M&M Q1 net up 40.55%

Mumbai, July 26 | Updated: Jul 27 2006, 05:30am hrs
Automotive major Mahindra & Mahindra has posted a 40.55% rise in net profit at Rs 204.17 crore for Q1, 2006-07, driven by 34% growth in farm equipment - its highest ever quarterly sales in this segment - and a 17% growth in its utility vehicle Scorpio.

A higher other income of Rs 45.4 crore in the quarter contributed to M&Ms bottomline. The M&M stock on Wednesday gained nearly 7% on the BSE to close at Rs 563.10.

Total income rose 23.42% to Rs 2,236.24 crore for the quarter ended June 30, from Rs 1811.86 crore in Q1, last fiscal, owing to higher volumes and better export performance.

The company sold 60,495 vehicles and tractors in the quarter, registering a 15% jump from the last fiscal.

M&Ms vehicle exports grew 55% with exports of 1,329 vehicles. The quarterly performance beats market expectations. The company has benefited from an increase in price by 2% across all models, said HC Raveendra of KR Choksey.

The company has also entered into a JV with Renault of France for the manufacture of a mid-sized sedan, the Logan.