M&M Q3 Net Zooms 184% To Rs 87.41 Crore

Mumbai, Jan 30: | Updated: Jan 31 2004, 05:30am hrs
Led by a strong market performance by both the automotive and the farm equipment sectors, Mahindra & Mahindra Ltd (M&M) reported a 184 per cent jump in net profit to Rs 87.41 crore in the third quarter ended December 31, 2003, as compared to Rs 30.78 crore in the corresponding quarter last year.

Gross sales and income from operations rose 33.6 per cent during the quarter to Rs 1,575.88 crore as against Rs 1,179 crore in the previous year. Net sales and income from operations at Rs 1,327.64 crore registered a 38 per cent growth during the quarter as compared to Rs 960 crore in the third quarter of the previous fiscal.

In addition to the performances of the automotive and the farm equipment sectors, a company release said that continued emphasis on cost control has enabled both these segments register significant improvement in profits.

In the automotive sector, the demand for the companys UVs continued to be robust. The companys domestic UV sales improved 32 per cent to 24,087 units as against 18,193 units last year. The quarter witnessed high growth of a large number of UV models including the Scorpio, Bolero and its variants as well as the Maxx and its variants. The company continued to be the market leader in this segment with a market share of 52 per cent.

In the LCV segment, the companys domestic volumes increased by three per cent to 1,609 units against 1,568 last year. This marks a turnaround in the companys LCV volumes against the decline witnessed in the first two quarters. Though the demand for minibuses remained sluggish, the companys LoadKing LCV performed well during the quarter.

In the large 3-wheeler segment, the companys domestic volumes increased 58 per cent to 4,454 units against 2,815 units. Its market share improved from 24 per cent in the third quarter last year to 30 per cent.

In the farm equipment sector, the favorable trends in the tractor volumes, that were witnessed in the second quarter of the current year continued and strengthened in the third quarter. The tractor sales of the company during the quarter grew by 21 per cent to 14,841 tractors as compared to 12,228 tractors in Q3 last year.