Mahindra and Mahindra Profit After Tax zooms by 849% in Q3
Gross Revenues increase by 51.2% and Profit Before Tax increases by 972% over corresponding period last year
Tweet-- The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results for the quarter ended 31st December 2009 for the company and for the consolidated Mahindra Group.
Q3 F2010 - M&M Standalone results
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 31st December 2009 is Rs.4920.3 crores as against Rs.3255.1 crores during the corresponding period last year - a growth of 51.2%. The Profit before tax for the quarter is Rs.587.3 crores as against Rs.54.8 crores in Q3 last year - a growth of 972%. Profit after Tax for the current quarter is Rs.413.7 crores as against Rs.43.6 crores in Q3 last year - a growth of 849%.
While the lower base for Q3 last year has an impact on the profit growth percentages, the financial results of the company for the quarter are nevertheless outstanding largely due to a strong sales performance by both Automotive and Farm Equipment Sectors. The government's stimulus package and easy availability of retail consumer finance continued to be conducive for good sales. Also the commodity prices, though they started to firm up during the quarter, were much lower than the peak levels reached last year.
In the current quarter, the company recorded a volume growth of 73.4% in the Utility Vehicle (UV) segment against an industry growth of 66.2%. It sold 50,602 vehicles in Q3
F2010 as against 29,184 vehicles in Q3 F2009 and thus reinforced its dominant position in the market by increasing its market share to 63.2% in the current quarter from 60.6% in Q3 last year. The volume and market share growth of the company was driven by the sales of Xylo, the refreshed version of the Scorpio and the all time customer favourite 'Bolero'. In the Pick-Up segment, the company registered a volume growth of 60% and posted a market share of 78%. In October 2009, the company launched the Mahindra Gio, India's first 4 wheel 0.5 ton Compact Truck. A category creating vehicle in the cargo commercial vehicle segment, the Mahindra Gio combines the style, status, comfort and safety of a four wheeler with the low operating and maintenance cost of a three-wheeler. The new launch has been well received by the customers.
During the current quarter, the domestic tractor industry sales grew strongly by 37% to
98536 tractors against 71939 tractors sold during Q3 last year. The company's domestic tractor sales under Mahindra and Swaraj brands were 41074 nos. during the current Q3 against 29754 nos. sold in Q3 last year- a growth of 38%. The company's total market share during the quarter stood at 41.5% as against 41.2% in Q3 last year.
YTD F2010 - M&M Standalone Results
The Gross Revenues and other income of Mahindra & Mahindra Ltd. during the period ended
31st December 2009 is Rs14788.8 crores as against Rs.10843.7 crores in the corresponding period previous year - a growth of 36.4%. The Net Profit after considering exceptional items and tax for the current period is Rs.1517.5 crores as against Rs.418.8 crores in the same period previous year - a growth of 262%.
Q3 F2010 - Group Consolidated Results
The Gross Revenues and Other Income for the quarter ended 31st December 2009 grew by
28.4% to Rs.8156.8 crores (USD 1.7 billion) from Rs.6354.0 crores (USD 1.3 billion) in Q3 last year. The profit before exceptional items and tax for the quarter is Rs.845.2 crores (USD 174.6 million) as compared to Rs.216.6 crores (USD 44.8 million) in Q3 of F2009.
The Consolidated profit after tax before minority interest for Q3 is Rs.556.9 crores (USD 115.1 million) as against Rs.144.9 crores (USD 29.9 million) in Q3 of F2009 - a growth of 284%. The Consolidated profit after tax for Q3 after deducting minority interests is Rs.473.7 crores (USD 97.9 million) as against Rs.39.1 crores (USD 8.1 million) earned in Q3 previous year - a growth of 1112%
YTD F2010 - Group Consolidated Results
The Gross Revenues and Other Income for the nine month period ended 31st December
2009 grew by 11.9% to Rs.24234.8 crores (USD 5.0 billion) from Rs.21652.8 crores (USD 4.5 billion) in last year. The profit before exceptional items and tax for the current year is Rs.2601.8 crores (USD 537.6 million) as compared to Rs.1501.2 crores (USD 310.2 million) in the corresponding period of the previous year. During the period there was an exceptional profit of Rs.202.0 cores that accrued to the group due to the Mahindra Holidays & Resorts India Ltd IPO. The Consolidated profit after tax before minority interest for the current year is Rs.1958.8 crores (USD 404.7 million) as against Rs.1203.6 crores (USD 248.7 million) in Q3 of F2009 - a growth of 63% The Consolidated profit after tax for the period ended 31st December 2009 after deducting minority interests is Rs.1749.1crores (USD 361.4 million) as against Rs.828.1 crores (USD 171.1 million) earned in the previous year - a growth of 111.2%.
Outlook:
India's economic growth is steadily picking momentum. After an indifferent growth of 5.8% in the last 2 quarters of F2009 and a growth of 6.1% in Q1 F10, GDP growth, led by the strong performance of industry and services sectors, surged to 7.9% in Q2 F10. IIP numbers for Oct-Nov 09 show an impressive 11% growth for these two months. Agriculture and inflation however, are a source of concern. Agricultural GDP which grew a mere 1.7% in
H1 F10, given the severe drought during the kharif season this year, is likely to see negative growth in the second half of the year. At the same time, inflation has leapfrogged from 4.8% in Nov 09 to 7.3% in Dec 09. In the wake of rising commodity prices, margins are expected to be under pressure in the months to come. The company expects to counter it by a strong volume performance and a persistent focus on cost control.
Notes:
1. The group consolidated results do not include the results of Satyam Computer Services Ltd (SCSL) and its subsidiaries.
2. Translation of rupee to dollar is a convenience translation at the average exchange rate for the twelve month period ended 31st December 2009.
Notes to Editor
Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $6.3 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image. Mahindra is the only Indian company among the top tractor brands in the world and has made an entry in the two-wheeler segment, which will see the company emerge as a full-range player with a presence in almost every segment of the automobile industry.
The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.
Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute ranked Mahindra among the top 10 Indian companies in its Global 200: The World's Best Corporate Reputations list.
Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.