‘Tractor industry showed growth in wake of good monsoon’
Mahindra & Mahindra (M&M) reported a 10 per cent growth in net profit at Rs.990 crore for the second quarter ended September 30, 2013, up from Rs.902 crore in the same period last year.
Gross revenues and other income were, however, down at Rs.9,891 crore against Rs.10,891 crore.
M&M and its 100 per cent subsidiary Mahindra Vehicle Manufacturers Ltd. (MVML) reported a net profit of Rs.1,028 crore against Rs.978.1 crore, up 5 per cent.
Gross revenues and other income of M&M and MVML (Entity) were lower at Rs.9,888 crore against Rs.10,787 crore.
In the passenger utility vehicle segment, the Entity sold 47,388 vehicles in the current quarter with a market share of 39.6 per cent. In the cars segment, the Entity sold 2,879 Verito and Verito Vibe cars. The Entity also exported 8,059 vehicles in the quarter, M&M said.
“In the wake of a good monsoon, the domestic tractor industry continued to show robust growth with sales of 141,171 tractors in the quarter against 116,524 tractors sold in the same period last year, a growth of 21.2 per cent,” the company said.
In this period, the company’s domestic sales, at 57,549 tractors, grew by 22.3 per cent over the 47,065 tractors sold in the same period last year. The company’s market share was 40.5 per cent as against 40.2 per cent.
Consolidated gross revenues and other income of the group for the quarter grew by 3.9 per cent to Rs.18,6756 crore from Rs.17,973 crore in the same period last year.
The consolidated profit after tax for the quarter was Rs.835.7 crore against Rs.798.7 crore.
Auto biz performance
“M&M’s PAT was higher than estimate led Farm Equipment segment and stable auto business performance. We expect normal monsoon could lead to healthy recovery in tractor volumes, while auto division could continue to lag due to lack of visible catalyst,” Rikesh Parikh Vice-President, Institution Corporate Broking, Motilal Oswal Securities, said.
Meanwhile, the board of M&M has appointed V. S. Parthasarathy as Chief Financial Officer of the company with effect from November 14.
The decision was taken after Bharat Doshi, Executive Director & Group Chief Financial Officer, decided to step down after working in the group for 40 years, including 21 years as Executive Director.
Mr. Doshi has been appointed an Additional Director. The board also approved the appointment of S. B. Mainak as an Additional Director, representing LIC on the board.