Mahindra & Mahindra Q1 Net grows by 29.3%.

|
Added in: Mahindra

mahindra_logo

The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results for the quarter ended 30th June 2013 of the company and the consolidated Mahindra Group.

Mahindra Vehicle Manufacturers Limited (MVML), located at Chakan near Pune, was set up as a 100% subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company. Hence it is a critical part of its business and only the combined results of the company and MVML can provide a comprehensive view of company’s performance.

 The Gross Revenues and other income of Mahindra & Mahindra Ltd. and MVML (Entity) during the quarter ended 30th June 2013 is Rs.10801.5 crore as against Rs.10003.9 crore in the previous year – a growth of 8.0%. The Net Profit before tax for the current quarter is Rs. 1214.1 crore as against Rs.1049.8 crore in Q1 previous year. After providing for tax the same is Rs. 909.7 crore against Rs. 778.5 crore in Q1 last year – a growth of 16.9%. The good growth in the profits of the entity in the quarter is due to a good volume performance by Farm Equipment Sector and tight control on expenses.

The operating margin of the Entity for the current quarter is 14.4% as compared to 13.9% in Q1 F2013. The automotive industry in India has been facing challenging times in the recent past and in Q1 F2014 the industry shrank by 2%. In the current quarter, the Entity sold 56969 passenger utility vehicles and continued its leadership position with a market share of 46.0%. In the Cars segment, the Entity launched the Verito Vibe – a variant of the Verito car. Verito and Verito Vibe together had a combined volume sales of sold 3255 cars. The Entity also exported 4771 Vehicles in the current quarter. The domestic tractor industry witnessed strong growth in Q1 F2014. In this period, the Entity sold 71696 tractors in the domestic market as compared to 56861 tractors sold in Q1 last year – a growth of 26.1%. The market share of the entity in the quarter was 41.4%. The Entity’s exports during the quarter at 3187 tractors, grew by 5.5% over 3020 tractors exported in Q1 F2013.

 The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 30th June 2013 is Rs.10887.8 crore as against Rs.10115.8 crore during the corresponding period last year – a growth of 7.6%. The Net Profit after tax for the quarter is Rs. 937.9 crore for the current Q1 as against Rs. 725.6 crore in the same period last year – a growth of 29.3%.

The consolidated Gross Revenues and Other Income of the Group for the Quarter ended 30th June 2013 grew by 9.5% to Rs. 19356.0 crore (USD 3.5 billion) from Rs.17670.8 crore (USD3.2 billion) in Q1 last year. On account of a change in the status of Tech Mahindra from a Joint Venture to an Associate effective 31st Aug 2012, the revenues reported above include M&M’s share of Tech Mahindra revenue only in Q1 F2013. On a like to like basis the growth in the consolidated revenues in the current quarter is 14.3% over Q1 F2013. The consolidated profit after tax before minority interest for the current quarter is Rs. 1249.9 crore (USD 227.4 million) as compared to Rs. 1019.7 (USD 185.5 million) crore in Q1 previous year a growth of 22.6%. After deducting minority interest, the profit after tax for the current quarter is Rs.1164.6 crore (USD 211.9 million) as compared to Rs.1026.4 crore (USD 186.7 million) in the previous year. The Group’s recent acquisition Ssangyong Motor Company Limited, S. Korea with a 26.8% growth in consolidated revenues and a 138% growth in results broke even for the first time since its acquisition in March, 2011 and returned a Profit After Tax of Rs 41 crore. The performance of Mahindra Finance with a 32% growth in consolidated revenues and a 18% increase in profits, and that of Mahindra Lifespaces with a 44% growth in consolidated revenues and a 13% growth in profits, were also noteworthy. In another significant development during the current quarter, with the Andhra Pradesh High Court delivering a favorable order on 11th June 2013, Tech Mahindra successfully completed the merger of Mahindra Satyam with itself to become the fifth largest IT Company in the country. The Group at the end of the quarter comprised of 128 Subsidiaries, 6 Joint Ventures and 11 Associates.

Leave a Reply

Your email address will not be published. Required fields are marked *