A strong performance by its automotive and farm equipment sectors and cost controls saw Mahindra and Mahindra (M&M) report a 242 per cent growth in its net profit at Rs. 703 crore for the second quarter of 2009-10 against Rs. 205.70 crore reported in the year ago period.
The company’s gross revenues and other income were higher by 32 per cent at Rs. 5,188.90 crore (Rs. 3,935 crore). The profit before tax excluding exceptional items for the quarter is Rs. 862.50 crore (Rs. 235.90 crore), a growth of 265.6 per cent. During the quarter, the company sold 33.69 lakh equity shares out of its holdings in its subsidiary Mahindra Holidays and Resorts India Ltd. (MHRIL) as a part of the IPO of that company at a price of Rs. 300 per share leading to an exceptional profit before tax of Rs. 90.80 crore.
The company saw volume growth of 43.7 per cent in the utility vehicles (UV) segment against an industry growth of 21.4 per cent. It sold 55,280 UVs (38,462 UVs). M&M’s pick-up segment saw volume growth of 26 per cent and a market share of 82.2 per cent.
While the domestic tractor industry sales grew by 27.1 per cent to 93,105 tractors (73,227 tractors), M&M’s domestic tractor sales were up by 32.4 per cent at 38,811 units (29,305 units) and the market share was up at 41.5 per cent (39.8 per cent).
On a group consolidated basis, for the quarter, M&M reported a growth of 126 per cent at Rs. 843.60 crore (Rs. 373.30 crore) after considering the MHRIL IPO profit and deducting minority interests. Gross revenues and other income for the quarter grew by 6.4 per cent to Rs. 8,262.20 crore (Rs. 7,768.80 crore).