Mahindra & Mahindra Q2 profit up 22%

Auto major Mahindra & Mahindra (M&M) today reported 22.3 per cent increase in standalone profit after tax at Rs 901.8 crore for the quarter ended September 30, 2012 on the back of good sales.

The company had posted a profit after tax of Rs 737.4 crore in the corresponding quarter last fiscal.

Total income during the quarter stood at Rs 10,891.4 crore, up 32.6 per cent from Rs 8,212 crore in the same period last year, Mahindra & Mahindra (M&M) said in a statement.

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

During the quarter under review, the passenger utility vehicle segment saw sales of 62,751 units, up 32 per cent from the year-ago period.

In the car segment, the company sold 4,899 units of the Verito sedan, it added.

Exports during the quarter stood at 10,349 units, up 43 per cent from 7,239 units in the same period last fiscal.

The company said in the wake of below normal monsoon, its tractor sales during the second quarter witnessed a decline of 12 per cent at 47,065 units as against 54,585 units in the year-ago period.

Commenting on the outlook, the company said: "The current economic situation is quite challenging. However, the company through its continuous focus on new product introduction, process innovation and cost control, expects to rise to this challenge adequately."

In a filing to BSE, M&M said its Board of Directors at its meeting held today has appointed D Vijayalakshrni as an Additional Director with immediate effect, representing Life Insurance Corporation of India.

Her appointment shall be valid up to the next annual general meeting of the company, the filing added.

Shares of M&M were trading at Rs 862.40 per scrip on the BSE, up 4.18 per cent from the previous close on the BSE.

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