A strong sales performance by its automotive and farm equipment sectors has enabled Mahindra and Mahindra (M&M) report a sharp jump in its net profit for the third quarter ended December 31, 2009, at Rs. 413.70 crore against Rs. 43.60 crore in the corresponding period in the previous year.
While the lower base for the third quarter last year had an impact on profit growth, the Government’s stimulus package and easy availability of retail consumer finance continued to be conducive for good sales. Also commodity prices were much lower than the peak levels reached last year. Gross revenues and other income, on a standalone basis, have risen by 51 per cent to Rs. 4,920.30 crore from Rs. 3,255.10 crore. The profit, before tax, has also shot up to Rs. 587.30 crore from Rs. 54.80 crore.
On a standalone basis, for the nine-months ended December 31, 2009, the profit zoomed to Rs. 1,517.50 crore from Rs. 418.80 crore on a 36.4 per cent higher gross revenues and other income which stood at Rs. 14,788.80 crore against Rs. 10,843.70 crore.
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On a group consolidated basis, excluding the results of Mahindra Satyam, M&M reported a net profit (before minority interest) of Rs. 557 crore against Rs. 145 crore. The company’s board on Monday approved the sub-division (stock-split) of equity shares of the face value of Rs. 10 each fully paid-up into two shares of the face value of Rs. 5 each.