M&M Q2 net jumps 68%

BS 200 SCORECARD

Mahindra & Mahindra's (M&M) net profit has surged 68 per cent for the second quarter ended September 30, 2004, at Rs 122.92 crore, compared with a net profit of Rs 72.99 crore, recorded in the corresponding period of the previous year.

The company reported a growth of 37 per cent in its net sales and income from operations for the quarter at Rs 1,554.4 crore, against net sales of Rs 1,139.1 crore, posted in the corresponding quarter of the previous year.

Bharat Doshi, executive director, finance and corporate affairs, M&M, said, "The company's operating margins have improved at 12 per cent in the quarter, on account of increased volumes. However, pressure on margins has continued due to rising steel and commodity prices."

Interest costs in the quarter declined 88 per cent at Rs 1.66 crore, compared with Rs 14.01 crore in the corresponding period of the previous year, while depreciation costs scaled 8.4 per cent at Rs 44.02 crore against Rs 40.60 crore. M&M stock closed at Rs 430.95 on Bombay Stock Exchange gaining tody 1.38 per cent.