M&M net up 44% on volumes, Anand Mahindra new CMD

Mahindra & Mahindra Ltd, India’s biggest utility vehicles maker, reported a better-than-expected 44 percent rise in quarterly profit, helped by an exceptional gain and strong volume growth by its tractor and car businesses.

Mahindra, one of the world’s biggest tractor manufacturers, said on Wednesday net profit for the March quarter was Rs 874 crore, against Rs 606 crore a year earlier. Net sales rose 39 percent to Rs 9,240 crore. Analysts on average expected profit of Rs 620 crore on revenues of Rs 8260 crore

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The company expects growth to pick up in the second half of 2012-13 and its medium/long term outlook on the Indian economy is positive. M&M had exceptional gain of Rs 108 crore on a tax saving in the fourth quarter. It made Rs 28 crore towards provision for taxes, significantly lower than Rs 201 crore provisions last year.

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The company sold 2.02 lakh utility vehicles last year, up near 20% year-on-year, while it sold 17,839 Verito cars, 78% higher than a year ago. M&M has a market share of 55.1% in utility vehicles and 9.5% in cars.

The company also said, Keshub Mahindra would retire as Chairman of M&M and would become Chairman Emeritus. Anand Mahindra will now become the new Chairman and MD, effective after the annual general meeting in August, it said.

The board recommended dividend of Rs. 12.50 (250 percent) per share of face value Rs 5.

The stock closed at Rs 659 ,up 0.42 percent on the BSE.

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