M&M Q3 net profit at Rs 6.62bn

The operating profit margin (OPM) for the period under review stood at 12.1%.

Total income has increased to Rs 82563.40mn for the quarter ended December 31, 2011 from Rs 61756.60mn for the quarter ended December 31, 2010.

In the Passenger Utility Vehicle segment, the company, with sales of 51702 vehicles in the current quarter, registered a growth of 22.9% over Q3 last year as compared to an industry growth of 18.4% and thus maintained its dominant position with a market share of 57.8%. All products in the company’s UV portfolio did well in the quarter. In the Passenger MPV VAN segment, company’s Gio compact cab and Maxximo Mini Van together recorded a volume of 6629 nos. with a market share of 13.4%. In a highly competitive LCV < 2T (mini truck) segment, the sales of company’s Maxximo Load & Gio Load grew by 12.1% and in the LCV > 2T & 3.5T by 35.0%. In the current quarter, the company exported 7587 vehicles as against 5020 vehicles in Q3 last year - a growth of 51%. SAARC, South American & South African markets continued to extend healthy support to company’s products.

The domestic tractor industry showed a moderate growth in the current quarter with sales growing by 12.7% over Q3 last year. The company’s performance during the quarter with domestic sales of 62342 tractors under the Mahindra & Swaraj brands and a sales growth of 12.0% over the Q3 last year matched that of the industry. The company’s market share during the quarter was 42.9%. The company exported 3840 tractors in Q3. The engine business revenue grew by 14.1% to Rs. 200.1 Crore in Q3 F2012 against Rs. 175.4 Crore for Q3 last year.

YTD F2012 – M&M + MVML Results
The Gross Revenues and other income of Mahindra & Mahindra Ltd. and MVML during the period ended 31st December 2011 is Rs.24609.4 crore as against Rs.18587.7 crore in the corresponding period previous year – a growth of 32.4%.  The Profit after tax for Apr-Dec 2011 is Rs 2085.8 crore as against Rs 1897.2 crores (excluding exceptional item) in the corresponding period previous year – a growth of 9.9%. 

YTD F2012 – M&M Standalone Results
The Gross Revenues and other income of Mahindra & Mahindra Ltd. during the year to date period ended 31st December 2011 is Rs.24471.7 crore as against Rs.18504.7 crore in the corresponding period previous year – a growth of 32.2%.  The Profit after tax for the current YTD period is Rs 2004.4 crore as against Rs 1938.1 crores (excluding exceptional item) in the same period previous year - a growth of 3.4%.

Group Consolidated Results
The Board meeting to approve the Q3 F2012 accounts of a few major subsidiaries is still to be held. After the approval and announcement of their results, the company will separately release the information on Consolidated Group Turnover and PAT.

Outlook:
The current year to date, with global macro risks particularly in the oil markets, has been a challenging one. The country’s economic growth, as a consequence, moderated significantly, and the year’s GDP is expected to grow by only 7.1%. As per IIP data, during April- December 2011 industrial production grew by just 3.8%. There are, however, some positive economic signals on the horizon at the moment. The recent positive economic news flow from the US and the long term refinancing operations announced by the European Central Bank in December has helped calm global financial markets. Portfolio flows to India, as a consequence, have picked up considerably in recent weeks, easing pressures on the balance of payments and the exchange rate. Also, domestic inflation, while still high, has begun trending down, raising hopes of a decline in interest rates. The Company has always met challenges through its continuous focus on new product introductions which have helped it drive volumes. However, in the near future, it is expected that margins will continue to be under pressure.