Mahindra (M&M) Q1 net profit up 20%

Driven by robust sales in the automotive segment, Mahindra & Mahindra today reported 25.90 per cent increase in consolidated net profit at Rs 778.47 crore for the quarter ended June 30, 2012.

It had posted consolidated net profit of Rs 618.31 crore in the same quarter last fiscal, Mahindra & Mahindra (M&M) said in a statement.

During the quarter under review, gross sales stood at Rs 9,937.70 crore as against Rs 7,345.04 crore in the same period last fiscal, up 35.30 per cent, the company said.

The financial result includes that of Mahindra Vehicle Manufacturers Ltd (MVML), a 100 per cent subsidiary of the company, which is into sourcing contemporary products for expanding the market offerings of the company.

While addressing the Annual General Meeting, outgoing Chairman Keshub Mahindra said: "Year gone by has been difficult and challenging. Despite global economic environment, inflation and weak currency, we grew well."

M&M said the growth in the profit, despite the increase in material costs, is due to good volume by automotive sector and tight control on expenses.

During the quarter, material costs stood at Rs 6,349.34 crore as against Rs 4,749.05 crore in the same period last fiscal, a jump of 33.70 per cent.

M&M said net sales from the automotive segment stood at Rs 5,822.52 crore during the quarter as against Rs 3,900.16 crore in the year ago-period, up 49.29 per cent.

The farm equipment segment's revenue went up by 7.74 per cent to Rs 3,078.29 crore from Rs 2,857.07 crore in the same quarter last fiscal, it added.

During the first quarter, the company sold 58,615 units in the passenger utility vehicle segment, registering a growth of 32 per cent over the same period last year. In the car segment, it sold 2,888 Veritos.

M&M also exported 7,841 vehicles in Q1 compared to 5,717 units in the year-ago period, up 37.2 per cent.

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