M&M Q1 Reports: Net Profit up 40%

The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results for the quarter ended 30th June 2010 for the company and for the consolidated Mahindra Group.

Q1 F2011 - M&M Standalone results:
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 30th June 2010 is Rs.5663.5 crores as against Rs.4711.8 crores during the corresponding period last year - a growth of 20.2%. Profit after tax for the current quarter is Rs. 562.4 crores as against Rs. 400.9 crores Q1 last year - a growth of 40.3%. The Operating Margin for the quarter is 15.03% as compared to 14.35% in Q1 F2010. The good financial results of the company for the quarter is due to higher volumes, focused cost control, prudent financial management resulting in lower interest expenses and a fuller realisation of the synergies arising from its acquisition of the erstwhile Punjab Tractor's Ltd.

In the current quarter the company continued its dominant position in the UV market with a market share of 59.4%. The company sold 53,948 utility vehicles in the quarter as against 48,720 utility vehicles in Q1 F2010, thus recording a volume growth of 11%. All products of the company, viz. Bolero, Scorpio, Xylo and the Pick Ups performed well during the quarter. The company exported 3125 vehicles during the quarter as against 1145 nos. in Q1 last year - an impressive growth of 173%. The company's products performed very well in SAARC, South Africa and South American markets.

In Q1 F2011 the company sold 47,916 tractors under the Mahindra & Swaraj brands as compared to 42130 nos. in Q1 last year - a growth of 13.7%. The company's domestic market share for the quarter stood at a commendable 40.7%. The company's tractor exports at 2376 nos. in the quarter registered a strong growth of 71.4% over the 1386 nos. exported in Q1 last year.

Q1 F2011 - Group Consolidated Results (not subjected to Limited Review)
The Gross Revenues and Other Income for the quarter ended 30th June 2010 grew by 9.4 % to Rs. 8,576.2 crores (USD 1.8 billion) from Rs.7,841.4 crores (USD 1.7 billion) in last year. The consolidated group profit for the year after exceptional items, prior-period adjustments and tax and after deducting minority interests is Rs.620.8 crores (USD 132.9 million) as compared to Rs.431.9 crores (USD 92.5 million) earned in the previous year - a growth of 43.7%.

In March 2010, with AT&T exercising its stock options, Tech Mahindra Ltd (TML) and its subsidiaries ceased to be group subsidiaries and became Joint Ventures of the Company. As a result of this change, the financials of TML Group from Q1 F2011 instead of being consolidated 100% are, as required by Accounting Standard AS 27, consolidated only in proportion to the Company's shareholding in TML. Hence the Group Revenues are not comparable with that of the previous years. On a comparable basis the Gross revenues and Other Income of the Group for the current quarter is Rs 9218.7 crores (USD 2.0 billion) - a growth of 17.6% over Q1 last year.

The Group numbers reported above do not include that of Satyam Computers Services Ltd. whose accounts are under restatement.

As on 30th June 2010, the Group comprised of 103 Subsidiaries, 5 Joint Ventures and 11 Associates.

During the current quarter, some of the major group companies like Mahindra Finance, Mahindra Lifespaces and Mahindra Ugine Steel significantly improved their performance over the previous year. The performance of Mahindra Finance with a 23% growth in consolidated revenues and an 86% increase in profits, and that of Mahindra Lifespaces with a 41% growth in revenues and a 39% profit growth, deserve special mention. Mahindra Ugine Steel which had reported a loss of Rs.4.6 crores for Q1 of F-10 has registered a turnaround and reported a profit of Rs.2.8 crores for the current quarter.

Source: The Mahindra Group