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M&M advances after Q2 results

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Capital Market
Last Updated : Oct 31 2014 | 3:32 PM IST

Mahindra & Mahindra rose 1.4% at Rs 1305.60 at 14:12 IST on BSE after net profit of M&M and its entity Mahindra Vehicle Manufacturers on comparable basis rose 1.7% to Rs 974.10 crore in Q2 September 2014 over Q2 September 2013.

The Q2 result was announced during market hours today, 31 October 2014.

Meanwhile, the S&P BSE Sensex was up 380.33 points or 1.39% at 27,726.66.

On BSE, so far 1.34 lakh shares were traded in the counter as against average daily volume of 63,860 shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.74% at the day's high of Rs 1,322.90 so far during the day. The stock lost as much as 0.2% at the day's low of Rs 1,285 so far during the day. The stock had hit a record high of Rs 1,421 on 4 September 2014. The stock had hit a 52-week low of Rs 847 on 4 February 2014.

The stock had underperformed the market over the past one month till 30 October 2014, sliding 5.48% compared with Sensex's 2.69% rise. The scrip had, however, outperformed the market in past one quarter, surging 5.62% as against Sensex's 4.83% rise.

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The large-cap company has equity capital of Rs 310.54 crore. Face value per share is Rs 5.

On comparable basis, gross revenue and other income of Mahindra & Mahindra (M&M) and MVML rose 4.7% to Rs 10400.90 crore in Q2 September 2014 over Q2 September 2013.

MVML, located at Chakan near Pune, was set up as a 100% subsidiary of Mahindra & Mahindra (M&M) with a view to sourcing contemporary products for expanding the market offerings of M&M.

In Q4 March 2014 under a scheme of arrangement the truck business of M&M's subsidiary Mahindra Trucks and Buses (MTBL) demerged from the subsidiary and merged with M&M.

On comparable basis, M&M's net profit rose 2.98% to Rs 946.60 crore on 4.72% growth in gross revenue and other income to Rs 10519.60 crore in Q2 September 2014 over Q2 September 2013.

On consolidated basis, M&M's net profit fell 4.98% to Rs 794 crore on 1.11% decline in gross revenue and other income to Rs 18467.70 crore in Q2 September 2014 over Q2 September 2013.

On future business outlook, M&M said that while recognizing the improved domestic environment and potential growth momentum in the medium term, it remains alert to volatility in the short term.

Mahindra Group enjoys a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two-wheeler industries.

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First Published: Oct 31 2014 | 2:09 PM IST

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