Mahindra & Mahindra rose 0.15% to Rs 1180.10 at 14:39 IST on BSE after the combined net profit after exceptional items and tax of M&M and its 100% subsidiary MVML rose 0.49% to Rs 967.70 crore in Q4 March 2014 over Q4 March 2013.
The Q4 result was announced during market hours today, 30 May 2014.
Meanwhile, the S&P BSE Sensex was up 14.81 points or 0.06% at 24,248.96.
On BSE, so far 1.17 lakh shares were traded in the counter as against average daily volume of 87,965 shares in the past one quarter.
The stock was volatile. The stock rose as much as 2.3% at the day's high of Rs 1205.55 so far during the day. The stock lost as much as 1.34% at the day's low of Rs 1162.55 so far during the day. The stock hit a record high of Rs 1252.70 on 26 May 2014. The stock 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 29 May 2014, surging 10.64% compared with Sensex's 7.87% rise. The scrip had also outperformed the market in past one quarter, jumping 21.05% as against Sensex's 14.74% rise.
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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 gross revenue and other income of Mahindra & Mahindra (M&M) and its 100% subsidiary Mahindra Vehical Manufacturers (MVML) declined 0.39% to Rs 11297.20 crore in Q4 March 2014 over Q4 March 2013.
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 and MVML's net profit excluding the trucks business of Mahindra Trucks and Buses (MTBL) stood at Rs 975.60 crore and operating margin was at 14% in Q4 March 2014.
During the current quarter, the Scheme of Arrangement for the merger of the trucks business of the M&M's subsidiary, MTBL with M&M, was approved by the High Court of Bombay vide its order dated 7 March 2014 and as required by the order, it has given effect with effect from 1 April 2013. In view of this the financials of the trucks business of MTBL became a part of the current year financials of the company. Also due to the merger, the past unabsorbed tax losses related to the trucks business of MTBL became available to the company and there was a one time tax saving during the current year, M&M said in a statement.
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 11.6% in Q4 March 2014, M&M said. Despite this, the entity could deliver a healthy operating margin and a growth in its 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.
The combined net profit after exceptional items and tax of M&M and MVML rose 7.44% to Rs 3905.10 crore on 0.91% decline in gross revenue and other income to Rs 43256.40 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Excluding the impact of the merger, the net profit of M&M and MVML stood at Rs 3913 crore and the operating margin stood at 14.5% in FY 2014.
With regard to the company's future business outlook, M&M said it believes the economy will witness a decisive, albeit gradual, turnaround in growth in 2014-15. The company added that its current outlook is tinged with optimism as the company awaits the economic policies of the new Government.
Meanwhile, M&M after market hours on Thursday, 29 May 2014 said that India Ratings & Research (lnd-Ra, a Fitch Group Company) has assigned a Long-Term Issuer Rating of 'IND AAA' to the company with a 'Stable' outlook. The rating indicates highest degree of safety regarding timely servicing of financial obligations, M&M added.
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
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