News Hour- Mahindra & Mahindra net profit rises by 36% at Rs 911 crore

Anand Mahindra

MUMBAI: Utility vehicle and tractor major, Mahindra & Mahindra(including MVML) posted a net profit of Rs 911 crore , a growth of 36% for the quarter ended March 2012. 

The revenues during the quarter was higher by 37% at Rs 10,333 crore. The growth in profits , despite the relentless increase in material cost is due to a good volume performance of both vehicles and tractors and tight cost control on expenses, the company said in a statement. 

The board of directors has recommended a dividend of Rs 12.5 per share of face value Rs 5 which will absorb a sum of Rs 868.61 crore. 

In the passenger utility vehicle segment, the company sold a total of 202217 vehicles registering a growth of 19% in FY12. For the third consecutive year, the company was the single largest tractor company in the world by volume with sales of 236666 tractors against 214325 tractors sold last year a growth of 10%. 

The company exported 29176 vehicles in Fy2012 as against 17138 vehicles , registeringa growth of 70% to markets such as SAARC, South America and South Africa. 

With global risks escalating, and continued weakness in the domestic macro environment, the near term outlook for the economy is quite challenging. 

However the company through its focus on new launches, cost control, process innovation expects to meet these challenges. The company expects growth to pick up in the second half of 2012-13.
(Source- http://economictimes.indiatimes.com)