However, the company has expressed concerns over increasing rubber prices, shortage of components like tyres, castings and fuel injections and hardening credit situation in the market. Moreover, it stated that the growth in the coming quarters may not mirror the growth experienced in the June quarter 2010-11 as the low base effect impact diminishes.
On consolidated basis, M&M net profit stood at Rs 620.8 crore for June quarter compared to Rs 431.9 crore in the same period last year. The gross revenues and other income for the June quarter 2010-11 stood at Rs 8576.2 crore as against Rs 7841.4 crore in the same period last year. The company's debt to equity ratio stands at 0.35:1. M&M has a debt of Rs 3,000 crore on its standalone account.
M&M chairman Keshub Mahindra said, High interest rates, credit crunch and commodity prices loom over us. The chairman got a thumbs up from shareholders and is being re-appointed as the director and continues as the chairman of the company. Moreover, the company said it is awaiting some additional information on cash-strapped South Korean Ssangyong Motor Company and will be taking a decision on the same at a later date closer to the final bid (August 10).
The total income (on standalone basis) of the company for the June quarter 2010-11 stood at Rs 5160.10 crore as against Rs 4242.59 crore for the same period last year. M&M has spent Rs 3252.79 crore on raw materials in the June quarter 2010-11 as against Rs 2740.67 crore in the same period last year, a growth of 19%. The company posted healthy operating margins of 15.3% for the June quarter 2010-11 as against 14.35% in the same period last year.