M&M net profit up 77.6% on higher sales | business | Hindustan Times
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M&M net profit up 77.6% on higher sales

Utility vehicle major Mahindra & Mahindra on Wednesday reported a 77.6% increase, year-on-year in net profit for the quarter ended December 31, 2010 at Rs 734.7 crore as against Rs 413.7 crore during the same period a year ago.

business Updated: Feb 09, 2011 21:29 IST
HT Correspondent

Utility vehicle major Mahindra & Mahindra on Wednesday reported a 77.6% increase, year-on-year in net profit for the quarter ended December 31, 2010 at Rs 734.7 crore as against Rs 413.7 crore during the same period a year ago.

M&M's robust performance was attributed largely to higher sales of its utility vehicles, SUVs and tractors that enabled it to more than negate rising input cost pressures. The firm's total income during the quarter grew by 36.1% to Rs 6,121.1crore over Rs 4,497.1 crore in 2009.

During the quarter all products in the company’s utility vehicle business did well with total sales of 56,211 units giving the company a market share of 62.2%. Sale of tractors also grew robustly at 30.5% to 128,288 units during the three month period.

Despite the stellar results, M&M warned about rising prices of commodities and higher interest rates as challenges that may hurt the growth story.

"While the demand for products remains robust, the recent hardening in the prices of commodities and oil causes a degree of concern," M&M said in a statement.

"The measures adopted by the Reserve Bank to combat inflation will necessarily result in tighter liquidity and further possibility of interest costs moving upwards."