Mahindra and Mahindra Q1 net profit jumps 40.3 percent

New Delhi, July 28 (IANS) Automobile major Mahindra and Mahindra (M&M) registered a 40.3 percent growth in net profit for the first quarter of this fiscal at Rs.562.4 crore as against Rs.400.9 crore in the like period of 2009-10.

‘The good financial results for the company this quarter is due to higher volumes, focused cost controls, prudent financial management results in lower interest expenses and fuller realisation of the synergies arising from its acquisition of the erstwhile Punjab tractors limited,’ the company said in a statement.

The gross revenue and other income of the company grew by 20.2 percent and stood at Rs.5,663.5 crore in the first quarter compared to Rs.4,711.8 crore in the corresponding period of the previous year.

The automotive giant also registered a 11 percent rise in its volume sales in the utility vehicles segment where it sold 53,948 units as against 48,720 in the first quarter of 2009-10. The company is also a leader in this segment with a 59.4 percent market share.

The company exported 3,125 vehicles, which was 173 percent more than last year’s first quarter exports which stood at 1,145 vehicles.

The company posted a 13.7 percent growth in the domestic tractor sales, as it sold 47,916 units as compared to 42,130 units in the like period of 2009-2010. While it exported 2,376 units registering a growth of 71.4 percent over 1,386 units sold in first quarter of 2009-10.

The net profit of the consolidated and diversified group grew at 43.7 percent and stood at 620.8 crore as against 431.9 crore in the corresponding period of previous fiscal year.

The gross revenues and other income of the group in the first quarter grew at 9.4 percent at 8,576.2 crore compared to Rs.7,841.4 crore.

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