M&M and MVML net profits up 35.5% in Q4

May 31, 2012: Mahindra & Mahindra and Mahindra Vehicle Manufacturers (MVML), located at Chakan near Pune, a 100 percent subsidiary established to source contemporary offerings, recorded gross revenues and other income of Rs 10,333.6 crore in the year ended March 31, 2012 as against Rs 75,42.5 crore in the previous year, up 37 percent. Net profit before tax for the current quarter was Rs 976.2 crore as against Rs 858.3 crores in Q4 of the previous year. After providing for tax, profits are Rs 911.3 crore against Rs 672.4 crore in Q4 last year, up 35.5 percent.

Gross revenues and other income of M&M in the quarter was Rs 10,288.4 crore as against Rs 7407.1 crore during the corresponding period last year, up 38.9 percent. The net profit after tax for the quarter is Rs 874.5 crore for the current Q4 as against Rs 606.5 crore in the same period last year, up 44 percent.

Gross revenues and other income of both entities during the year ended March 31, 2012 is Rs 35,005.2 crore as against Rs 26,201.1 crore in the previous year, up 33.6 percent. Net profits before tax for the current year is Rs 3,785.8 crore as against Rs 3,544.5 crore in the previous year. After providing for tax, it was Rs 2,997.0 crore as against Rs 2,687 crore in the previous year, up 11.5 percent. Operating margins for the combined entity in the current year is 13.3 percent.

At the end of the year, the Scheme of Arrangement for the merger of the automotive business of M&M’s subsidiary, Mahindra Automotive Distributors (MADPL), with M&M was approved by the High Court of Bombay vide its order dated March 30, 2012 and came into effect on April 1, 2011. In view of this, MADPL’s Verito business became a part of the current year financials. Also, due to the merger, the past unabsorbed tax losses related to MADPL’s automotive business became available to the company and there was a one-time tax saving during the current year.

M&M sold 202,217 passenger vehicles, up 19.5 percent. In the cars segment, 17,839 units of the Verito were sold, up 78.2 percent over previous year, with a market share of 9.5 percent. The company exported 29,176 vehicles as compared to 17,138 in the previous year, up 70.2 percent.

On the tractor front, M&M retained its position for a third consecutive year as the world’s single largest tractor company by volume with sales of 236,666 tractors against 214,325 tractors sold last year, up just over 10 percent. This comprised domestic sales of 222,944 tractors against 202,513 tractors sold last year. Exports during the year grew by 16.2 percent to 13,722 tractors as compared to 11,812 tractors exported in the previous year.