M&M Q2 net soars 242 per cent to Rs703 crore

Utility vehicle and tractor major Mahindra & Mahindra today reported a 241.7 per cent growth in fiscal second quarter (July-September 2009-10) net profit at Rs702.9 crore, against Rs205.7 crore in the similar quarter of the previous year.

Gross revenues and other income of the company for the quarter ended 30 September 2009 stood at Rs5,188.9 crore as against Rs3,935.0 crore during the corresponding period last year - a growth of 31.9 per cent.

Profit before tax excluding exceptional items for the quarter was Rs862.5 crore, against Rs235.9 crore in Q2 last year - a growth of 265.6 per cent. During the quarter, the company sold 33,69,191 equity shares out of its holdings in its subsidiary Mahindra Holidays and Resorts India Ltd (MHRIL), as part of the IPO of that company, at a price of Rs300 per share. There was an exceptional profit before tax of Rs90.8 crore arising from this sale. After considering exceptional items and providing for tax, the net profit for the current quarter is Rs702.9 crore against Rs205.7 crore in Q2 last year - a growth of 241.7 per cent.

"The outstanding performance of the company during the quarter was largely due to strong sales performance by both automotive and farm equipment sectors and the company's continued and relentless focus on cost reengineering and cost control," M&M said in a release.

In the current quarter, the company recorded a volume growth of 43.7 per cent in the utility vehicles segment against an industry growth of 21.4 per cent. It sold 55,280 UVs in Q2 FY10 as against 38,462 UVs in Q2 FY09, thereby increasing its market share to 64.9 per cent in the current quarter from 54.8 per cent in Q2 last year and reinforcing its market dominance.

The volume and market share growth of the company was driven by the excellent sales of `Xylo' as well as the refreshed version of the `Scorpio' and the all time customer favourite 'Bolero'. In the pick-up segment, the company strengthened its leadership position with a volume growth of 26 per cent and a market share of 82.2 per cent. In this segment it also launched its stylish new pick-up 'Bolero Maxi Truck' with micro hybrid technology.