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M&M speeds up after strong Q1 results

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Capital Market
Last Updated : Aug 08 2013 | 10:25 AM IST

Mahindra & Mahindra jumped 3.97% to Rs 723.10 at 14:24 IST on BSE as the combined net profit of the firm and its 100% subsidiary jumped 25.9% to Rs 778.50 crore on 35.2% growth in gross revenue to Rs 10003.90 crore in Q1 June 2012 over Q1 June 2011.

The company announced the first quarter results during trading hours today, 8 August 2012.

Meanwhile, the BSE Sensex was up 121.77 points or 0.69% to 17,723.55.

On BSE, 2.29 lakh shares were traded in the counter as against average daily volume of 1.02 lakh shares in the past one quarter.

The stock hit a high of Rs 725.20 and a low of Rs 699.90 so far during the day. The stock had hit a record high of Rs 874.75 on 28 October 2011. The stock had hit a 52-week low of Rs 621.75 on 18 May 2012.

The stock had underperformed the market over the past one month till 7 August 2012, falling 4.87% compared with the Sensex's 0.46% rise. The scrip had also underperformed the market in past one quarter, rising 0.64% as against Sensex's 4.07% rise.

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The large-cap company has equity capital of Rs 306.99 crore. Face value per share is Rs 5.

The combined net profit of Mahindra & Mahindra (M&M) and its 100% subsidiary -- Mahindra Vehicle Manufacturers (MVML) -- jumped 25.9% to Rs 778.50 crore on 35.2% growth in gross revenue to Rs 10003.90 crore in Q1 June 2012 over Q1 June 2011. MVML, located at Chakan near Pune in Maharashtra, has been set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offering of M&M.

M&M said the growth in first quarter net profit despite relentless increase in material costs was on the back of good volume performance of the company's automotive sector and also due to tight control on expenses.

M&M said some of the major group companies viz. Mahindra Finance, Mahindra Satyam, Mahindra Lifespace Developers and Mahindra Holidays & Resorts significantly improved their performance in Q1 June 2012.

M&M said the drought-like conditions prevailing in several states this year has added to the risks of domestic companies.

M&M is India's premier utility vehicles and farm-equipment company.

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First Published: Aug 08 2012 | 2:25 PM IST

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