Net profits down six percent for M&M

Mahindra & Mahindra, which announced unaudited financial results for Q1 of the current fiscal year today, said gross revenues for M&M and its 100 percent arm, Mahindra Vehicle Manufacturers, was Rs 10,823.3 crore as against Rs 10,942.7 crore in Q1 of the previous year.

Net profits before tax for Q1 were Rs 1202.1 crore as against Rs 1138.6 crore in Q1 of the previous year. After providing for tax, the same was Rs 896.4 crore as against Rs 859.8 crore in Q1 of the previous year – a growth of 4.3 percent. The operating margins for the current quarter were 14.3 percent as compared to 13.8 percent in Q1 of the previous year.

In Q4 F2014, under a scheme of arrangement, the truck business of M&M subsidiary, Mahindra Trucks and Buses, was demerged from the subsidiary and merged with M&M.

In the current quarter, M&M and MVM sold 52,180 utility vehicles, accounting for a 40 .5 percent share. It exported 6,565 vehicles in the current quarter.

Crop damage caused by unseasonal rains in some parts of India in March coupled with deficient monsoons in June led to marginal de-growth of 1.2 percent in the domestic tractor industry in the first quarter of 2014-15. In terms of numbers, 72,166 tractors were sold locally as compared to 71,696  tractors sold in Q1 previous year. The market share in the quarter was 42.2 percent as against 41.4 percent in Q1 of the previous year. On the export front, 2,587 units were sold.

On a standalone basis, gross revenues and other income of M&M for Q1 was  Rs 10,952.4 crore as against Rs 10,887.8 crore in Q1 of 2012-13. Net profits after tax for the quarter was Rs 881.8 crore for the current quarter as against Rs 937.9 crore in the corresponding period last year.

On a comparable basis, the revenues and other income was Rs 10,952.4 crore as against Rs 11,127.5 crore in Q1 of the previous year. Net profit after tax for Q1 was Rs 881.8 crore as against Rs 888.0 crore in Q1 of the previous year.