M&M net rises 2% to Rs889 cr on SUV sales

Written by fe Bureau | Mumbai | Updated: May 31 2013, 06:47am hrs
Growth in utility vehicle sales along with cost-control measures saw Mahindra & Mahindra (M&M) beat analysts estimate to report a rise of 2% in its standalone net profit at R889.19 crore during the January-March period. The companys net profit during the same period last year was R874.48 crore.

The companys total income during the period was up 12% at R10,486.53 crore against R9,380.84 crore during the same period last year.

For the full fiscal, M&Ms net profit jumped 31% to R4,099.20 crore against R3,126.66 crore reported last year. Total income grew 16% at R68,735.66 crore against last years R59,398.94 crore.

It has been a difficult year as both tractors and passenger vehicle market has been under stress. And the 3% additional excise duty has impacted our margins, said Bharat Doshi, executive director and group CFO. He added that the liquidity is expected to improve in the market in the next six months with interest rates expected to come down by 50 basis points which in turn may help the industry.

M&M also announced that Doshi would take over as the non-executive director on the board of M&M from November this year.