Mahindra & Mahindra (M&M) announced a 44 per cent rise in standalone net profit for the fourth quarter of 2011-12 at Rs.874.5 crore. The standalone revenue rose 39 per cent to Rs.10,288.4 crore. The board of directors recommended a dividend of Rs.12.5 per share. For the whole of 2011-12, M&M reported an 8 per cent higher standalone net profit of Rs.2,879 crore on 34 per cent higher revenue of Rs.34,820.3 crore.
A statement from the company said, “the growth in profits of the company, despite the relentless increase in material costs, is due to a good volume performance by both Vehicles and Tractors and tight control on expenses.” The merger of the automotive business of M&M's subsidiary, Mahindra Automotive Distributors Ltd. (MADPL), with M&M came into effect from April 1, 2011. Due to the merger, the company said, the past unabsorbed tax losses related to automotive business of MADPL became available to it and there was a one-time tax saving during the year and the Verito business of MADPL became a part of the company's financials.
In 2011-12, the company sold 19.5 per cent more passenger utility vehicles at 2.02 lakh vehicles with a market share of 55.1 per cent. It sold 17,839 Verito cars, a growth of 78.2 per cent and share of 9.5 per cent while exports grew 70 per cent to 29,176 vehicles.
M&M's tractor sales grew 10.4 per cent to 2.37 lakh units with domestic sales of 2.23 lakh units and a 41.4 per cent share. Exports grew 16.2 per cent to 13,722 units.
On a group consolidated basis, net profit grew 1.5 per cent for the year to Rs.2,126.7 crore on 59 per cent higher revenue of Rs.63,357.8 crore. The company attributed the growth in group revenues to the inclusion of the turnover of Ssangyong Motor Company during the year. “The sluggish growth in group profits is also to some extent due to the Ssangyong's inclusion. Excluding Ssangyong, the growth in consolidated revenues is 28.1 per cent and profits 14.5 per cent,” M&M said.
The group comprises 114 subsidiaries, six joint ventures and 11 associates.
In its outlook, the company said it expected growth to pick up in the second-half of 2012-13 and its medium/long-term outlook on the Indian economy was positive.