M&M clocks Rs 944-million net profit in Q4
17 June 2002
The company has posted a net profit of Rs 969.15 million for the year ended 31 March 2002 as compared to Rs 1,205.56 million in the year ended 31 March 2001. The total income (net of excise) has decreased from Rs 35,975.29 million in the year ended 31 March 2001 to Rs 33,203.16 million in the year ended 31 March 2002.
The net profit for the quarter ended 31 March 2002 has been arrived at after consideration of prior period adjustments of Rs 35.49 million and Rs 57.79 million in FY02. The company has incurred an extraordinary expenditure of Rs 172.86 million in FY02 and earned Rs 123.02 million as extraordinary income during the quarter ended 31 March 2002.
The board has recommended a dividend of 50 per cent (Rs 5 per share).
The Bombay High Court had recently approved the amalgamation of e-Mahindra Solutions, Mahindra Auto Specialities and Mahindra Alternative Technologies with M&M with effect from 31 March 2002. M&M has undertaken a financial restructuring exercise, which entails merging three of its subsidiaries and writing off deferred revenue expenses up to a maximum of Rs 500 crore against its share premium account (SPA).
The balance in SPA, which stood at Rs 819 crore as on 31 March 2001, will decline to Rs 319 crore after a write-off. The company is writing off deferred revenue expenses due to product development, VRS, minor software expenditure and Rs 374 crore in finance charges as on 30 September 2001.
Earlier Fitch India had downgraded the Ind AAA rating of the Rs 650-crore secured non-convertible debentures of M&M to Ind AA+. The Ind D1+ rating of the Rs 150-crore commercial paper programme has been affirmed.
The Ind AA+ rating indicates high credit quality, while Ind D1+ indicates very high certainty of timely payment. The new rating takes into account the continuing sluggishness in the utility vehicle market and the sharp decline in the company's tractor sales.