M&M Q1 net up 40%; Ssangyong decision put off
Automobile maker Mahindra and Mahindra on Wednesday deferred a decision on a potential bid for bankrupt South Korean carmaker Ssangyong Motor to a date closer to the deadline of August 10. HT reports. See graphicautos Updated: Jul 28, 2010 22:09 IST
Automobile maker Mahindra and Mahindra on Wednesday deferred a decision on a potential bid for bankrupt South Korean carmaker Ssangyong Motor to a date closer to the deadline of August 10. The company said it was awaiting some additional information on Ssangyong.
M&M reported a 40 per cent increase in net profit during the April-June quarter at Rs 562.4 crore against Rs 400.9 crore during the same quarter in 2009-10. Its sales during the quarter were up 20.2 per cent at Rs 5,663.5 crore.
Mahindra, a very active player in the mergers and acquisitions space, is one of the six bidders, including Renault-Nissan and compatriot Ruia Group, shortlisted to bid for the South Korean company that has been under court-led restructuring since early 2009. This year, M&M has already bought over electric carmaker Reva Car Company and Renault’s stake in their joint venture Mahindra Renault.
“A lot of information is coming in while due diligence is on,” said Bharat Doshi, chief financial officer, M&M. “A decision on the bid has been deferred for now.”
The company said that while normal monssons will fuel demand for its vehicles and raw material costs have also begun to soften, rising interest rates could prove to be a dampener.
“If there are any further hikes (in interest rates) then there will be an impact on consumer finance and also on demand,” Doshi added.