Mahindra’s net profits up 7 percenrt in Q1

Mahindra & Mahindra said gross revenues and other income for the quarter ended 30 June 2011 was Rs 72,94.3 crore as against Rs 56,63.5 crore during the corresponding period last year – a growth of 28.8 percent.

Net Profits before tax for the current quarter is Rs 814.3 crore as against Rs.721.1 crore in Q1 last year – a growth of 12.9 percent. In the current quarter, the non-cash charge arising from amortisation of ESOPs granted in earlier years was Rs 26.5 crore as compared to Rs 0.9 crore in Q1 F2011. Excluding this charge, the PBT growth in the current quarter over Q1 last year was 16. percent Profit after tax for the current quarter was Rs 604.9 crore as against Rs. 562.4 crore Q1 last year – a growth of 7.6 percent. The growth in the profit of the company despite the relentless increase in material costs has been attributed to good volume performance by both vehicles and tractors and tight control on expenses.

M&M’s auto sector volumes in Q1 F2012 registered a 20.9 percent in the local market. In the Passenger Utility Vehicle (UV) segment, against an industry growth of 5.1 percent for the quarter 44,407 vehicles grew by 14.3 percent The company continued its dominant position with a market share of 56.2 percent. In the Passenger MPV segment, M&M launched GIO compact cab in Feb 2011 Maxximo Mini VAN recently in April 2011. Both the products together, even so soon after their launch, recorded a volume of 4,073 nos. in the current quarter, with a market share of 7.1%. In a highly competitive LCV under ( < 2T (mini truck) segment) the Maxximo Load & Gio Load vehicles sold 12,154 units, up 53 percent.

In the current quarter, M&M exported 5,717 vehicles as against 3,125 vehicles registering a growth of 82.9% over Q1 last year.The domestic tractor industry sales grew in Q1 F2012 by 13.7% to 133,103 tractors against 117,099 tractors sold during Q1 last year. The company however out-performed the Industry by selling 57,500 tractors as compared with 47,916 tractors in Q1 last year – a growth of 20.0 percent As a result, the company’s domestic market share in the quarter grew significantly to 43.0% as compared to 40.7% for Q1 F2011.