Mahindra and Mahindra (M&M) on Monday announced a net profit of Rs.2,662.10 crore for 2010-11 against Rs.2,087.80 crore on a standalone basis, a growth of 27.5 per cent.
The profit growth comes despite continued increase in input costs and was boosted by good volumes in both vehicles and tractor sales, tight control on expenses and lower interest cost arising out of prudent financial management.
Revenues were higher at Rs.25,896 crore against Rs.20,595.50 crore, a growth of 25.7 per cent.
The board of directors has recommended a dividend of Rs.10.50 and a special dividend of Re.1 per share of the face value of Rs.5 aggregating Rs.11.50. The special dividend is being recommended in view of a special profit of Rs.117.50 crore made by the company on sale of its entire holdings in Owens Corning India.
The utility vehicle segment did well with sales of 2.30 lakh vehicles and a market share of 61 per cent. In the three-wheeler and mini four-wheeler segment, sales grew by 33 per cent. During the year, exports were up 62 per cent at 17,138 vehicles (10,567 vehicles). M&M sold 2.14 lakh tractors (1.75 lakh tractors), including domestic sales of 2.03 lakh tractors (1.66 lakh tractors). The company had a 42 per cent market share in the domestic tractor market.
Pawan Goenka, President, (Automotive sector), said last year, the increase in input prices impact M&M significantly.
Mr. Mahindra said the group's scooters segment was doing well in what is a “fairly closed industry”. On the motorcycle foray, he said the issue was to make sure that the products were right for the market. Mr. Goenka said the company has not yet taken a decision on bidding for the government-owned Scooters India. “We will take in call in the next 35 days”.
On electric vehicles, he said Reva-I numbers were up significantly.
