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M&M cuts losses after decent Q3 numbers

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Capital Market
Last Updated : Feb 14 2014 | 11:55 PM IST

Mahindra & Mahindra lost 0.12% to Rs 905.60 at 14:42 IST on BSE after the combined net profit of M&M and MVML rose 9.3% to Rs 1000.10 crore on 2.18% decline gross revenue and other income to Rs 11270 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced during trading hours today, 14 February 2014.

Meanwhile, the S&P BSE Sensex was up 122.45 points or 0.61% at 20,315.80.

On BSE, so far 95,000 shares were traded in the counter as against average daily volume of 81,718 shares in the past one quarter.

The stock was volatile. The stock lost as much as 2.15% at the day's low of Rs 887.15 so far during the day. The stock rose as much as 0.81% at the day's high of Rs 914 so far during the day. The stock had hit a record high of Rs 1,026.45 on 20 May 2013. The stock had hit a 52-week low of Rs 741.50 on 28 August 2013.

The stock had outperformed the market over the past one month till 13 February 2014, advancing 1.98% compared with the Sensex's 4.45% fall. The scrip had also outperformed the market in past one quarter, rising 1.27% as against Sensex's 0.01% fall.

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The large-cap company has equity capital of Rs 307.94 crore. Face value per share is Rs 5.

The combined operating margin of Mahindra & Mahindra (M&M) and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) edged up to 15% in Q3 December 2013, from 13.5% in Q3 December 2012.

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

M&M said that the deceleration in the gross revenue in the quarter is due to the challenging times the Indian auto industry is currently passing through with volumes shrinking by 11.7% in Q3 December 2013. Despite this, the entity could deliver a very healthy increase in operating margin and a growth in the profits in the quarter due to a strong sales performance by its Farm Equipment Sector and a tight control on material costs and all expenses, M&M said in a statement.

In the Passenger Utility Vehicle segment, the entity sold 54,164 vehicles in Q3 December 2013 with a market share of 38.2%. In the Cars segment, the entity sold 1,967 Verito and Verito Vibe cars. The entity also exported 8,492 vehicles in Q3 December 2013, M&M said in a statement.

In the wake of a good monsoon, the domestic tractor industry continued to show robust growth with sales of 181,566 tractors in Q3 December 2013, up from 150,562 tractors sold in Q3 December 2012, a growth of 20.6%. During the quarter, the company's domestic sales at 76,362 tractors grew by 22.1% over the 62,522 tractors sold in Q3 last year, the company said. Company's market share was 41.9% in Q3 December 2013 as against 41.4% in Q3 December 2012. Mahindra Powerol posted net revenue of Rs 173.20 crore in Q3 December 2013 as against Rs 208.50 crore in Q3 December 2012, M&M said in a statement.

M&M's net profit rose 11.7% to Rs 934.10 crore on 2.53% decline in gross revenue and other income to Rs 11295.10 crore in Q3 December 2013 over Q3 December 2012.

M&M said that it maintains at present a cautious and watchful outlook on the economy.

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

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First Published: Feb 14 2014 | 2:45 PM IST

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