M&M net up 68% to Rs 123 cr

Mumbai, Oct 28 | Updated: Oct 29 2004, 05:30am hrs
Mahindra & Mahindra has reported a 68% increase in growth to Rs 122.9 crore for the second quarter ended September 30, 2004 as compared to Rs 72.99 crore for the corresponding quarter last year.

Income from operations grew by 37% to Rs 1,554 crore from Rs 1,139 crore last year.

The improvement in profits was attributed to the strong sales performance by both automotive and farm equipment sectors and continued cost control measures, a Mahindra release said.

On the outlook ahead, the release stated that the domestic economic scenario is robust and augurs well for a demand led growth. However, hardening of inflation, driven by supply side factors like rising crude and commodity prices may act as a dampener, the release said.

During the quarter under review, sales of utility vehicles grew by 25% to 26,877 vehicles as against 21,528 vehicles in the corresonding quarter last year. This growth was mainly due to the good performance of the recently launched Bolero variants.

In LCVs segment, the company sales improved by 36% to 2,239 vehicles against the industry growth of 16%. In the large three wheelers segment, the company sold 6,407 vehicles registering a growth of 34% last year, the release said.

In the farm equipment sector, the company sold 12,737 tractors registering a growth of 32% over 9,656 tractors sold in the corresponding quarter last year. The company continued to be a market leader with a market share of 24.1%, the release said.

The spare parts operations of the company reported a 77% growth to Rs 40 crore as compared to Rs 22.6 crore last year.

The spare part operations include sale of engines for other applications, which started as an initiative some time back and is now showing a healthy growth, the release said.