M&M net skyrockets 185% to Rs 703 crore

Written by fe Bureaus | Mumbai | Updated: Oct 30 2009, 05:47am hrs
Mahindra & Mahindra (M&M) has posted its highest-ever quarterly profit for the quarter ending September 30, 2009. The net profit of the company (standalone) surged 185% to Rs 703 crore compared to Rs 247 crore in the same period last year, beating expectations. On a consolidated basis, the Mahindra Groups net profit after considering Mahindra Holidays and Resorts India Ltd (MHRIL) initial public offer fund-raising and deducting minority interests of Rs 844 crore was up 126% from Rs 373.3 crore in the same period last year.

Shares of M&M on Thursday closed at Rs 927.75, up 3.93%, on the BSE.

The high profit is on the back of low raw material costs, volume recovery and cost management efforts undertaken by the company. The profit before tax of the company includes a one-time gain of Rs 91 crore arising from the sale of share in subsidiary MHRIL, part of the unit's initial public offering. The good performance by its farm equipment sector also boosted its profit as domestic sales grew 32% and the benefits of merger of Punjab Tractors showed up in the quarterly performance.

Talking to the media here, Bharat Doshi, M&M chief finance officer, said, We are at the best point (in terms of volumes, interest rates and raw material costs). But there are concerns over raw material costs hardening in the coming quarters.