The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results for the quarter ended 31st December 2010 for the company and for the consolidated Mahindra Group.
Q3 F2011 – M&M Standalone results
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 31st December 2010 is Rs.6684.0 crores as against Rs.4920.3 crores during the corresponding period last year – a growth of 35.8%. The Profit before tax and exceptional items for the quarter is Rs.866.2 crores as against Rs.587.3 crores in Q3 last year – a growth of 47.5%. During the current quarter the company exercised the put option it had on its entire holdings in Owens Corning India Limited which resulted in an exceptional profit of Rs 117.5 crores. Profit after including exceptional items and after Tax for the current quarter is Rs.734.7 crores as against Rs.413.7 crores in Q3 last year. Excluding exceptional items the profit after tax during the current Q3 is Rs.617.20 crores as against Rs.413.7 crores in Q3 last year – a growth of 49.2%. The significant growth in the profit of the company despite the relentless increase in material costs is due to a good volume performance by both Vehicles and Tractors, tight control on expenses and prudent financial management resulting in lower interest costs.
In the current quarter all the products in the company’s UV segment continued to do well. In this segment the company sold a total of 56,211 vehicles in Q3 F2011 and maintained its dominant position with a market share of 62.2%. In the small 4W load carriage segment, Company’s Maxximo launched in Q4 last year, performed exceedingly well and notched a market share of 21.6% during the current quarter. In the three wheeler and mini four wheeler segment, sales grew by 22.8% which is well above industry growth of 14.8%. During the quarter the company exported 5,020 vehicles as against 3,331 vehicles in Q3 last year – a growth of 50.7%. SAARC, South Africa & South America are some of the markets where the company’s products sold very well.
The domestic tractor industry registered a strong growth of 30.5% in Q3 F2011, with sales of 128,288 tractors as compared to 98,338 tractors in Q3 F2010. In this period, the company’s domestic sales under the Mahindra & Swaraj brands grew by 35.5% to 55,649 tractors as against 41,074 tractors in Q3 last year. The company’s market share in the quarter stood at 43.3% as against 41.6% in Q3 F2010. The Company’s tractor exports during the current quarter at 3120 tractors grew by 10.1% over 2834 nos. exported in Q3 last year.
YTD F2011 – M&M Standalone Results
The Gross Revenues and other income of Mahindra & Mahindra Ltd. during the period ended 31st December 2010 is Rs18504.7 crores as against Rs.14788.8 crores in the corresponding period previous year – a growth of 25.1%. Profit before tax and exceptional items during the current period was 2594.1 crores as against 1987.9 crores in the corresponding period last year – a growth of 30.5%. The Net Profit after considering exceptional items and tax for the current period is Rs.2055.6 crores as against Rs. 1517.5 crores in the same period previous year. Excluding exceptional items the profit after tax during the current period is Rs 1955.4 crores as against Rs.1448.7 crores in the same period last year – a growth of 35.0%.
Q3 F2011 – Group Consolidated Results
The Gross Revenues and Other Income for the quarter ended 31st December 2010 grew by 20.9% to Rs.9865.4 crores (USD 2.2billion) from Rs.8156.7 crores (USD 1.8 billion) in Q3 last year. It should be noted that since Tech Mahindra has become a JV from the current year, the group revenues for the current quarter include only 48.2% of the Tech Mahindra revenue as compared to the 100% included in the revenues till last year. The Consolidated profit after tax for Q3 after deducting minority interests is Rs.821.9 crores (USD 179.8 million) as against Rs.473.7 crores (USD 103.6 million) earned in Q3 of the previous year. The Consolidated profit after tax for Q3 excluding exceptional items but after deduction of Minority Interests is Rs.757.8 crores (USD 165.8 million) as against Rs.481.6 crores (USD 105.4 million) earned in Q3 previous year – a growth of 57.4%.
The performance of Mahindra Holidays & Resorts India Limited, Mahindra Finance, Mahindra Lifespace Developers Limited and Tech Mahindra Limited were especially commendable.
YTD F2011 – Group Consolidated Results
The Gross Revenues and Other Income for the nine month period ended 31st December 2010 grew by 14.9% to Rs. 27851.9 crores (USD 6.1 billion) from Rs. 24234.8 crores (USD 5.3 billion) in the nine months of the previous year. The Consolidated profit after tax for the period ended 31st December 2010 after deducting minority interests is Rs.2130.7 crores (USD 466.1 million) as against Rs.1749.1 crores (USD 382.7 million) earned in the previous year. The consolidated Profit after tax excluding exceptional items but after deduction of Minority Interests for the current period ended 31st December 2010 is Rs 2095.0 crores (USD 458.3 million) as against Rs 1571.6 crores (USD 343.8 million) for the comparable period last year – a growth of 33.3%.
Outlook:
Driven by a strong growth in all the three sectors of the economy – agriculture, industry and services – India’s GDP grew by a robust 8.9% yoy in H1 F2011. As per current forecasts, the economy is likely to register a creditable 8.5 to 8.7% growth for the fiscal year as a whole. While the demand for your Company’s products remains robust, the recent hardening in the prices of commodities and oil causes a degree of concern. The measures adopted by the Reserve Bank to combat inflation will necessarily result in tighter liquidity and further possibility of interest costs moving upwards. Your Company will continue to be ever vigilant in its effort to relentlessly fight these cost pressures. On the whole the Company remains positive in its future outlook.
Notes:
- The group consolidated results for Q3 and the cumulative period include results of Satyam Computer Services Ltd (SCSL) and its subsidiaries upto H1 F2011 only.
- Translation of rupee to dollar is a convenience translation at the average exchange rate for the twelve month period ended 31st December 2010.
About The Mahindra Group
The Mahindra Group focuses on enabling people to rise. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, and vacation ownership. Mahindra has a presence in the automotive industry, agribusiness, aerospace, components, consulting services, defense, energy, finance and insurance, industrial equipment, logistics, real estate, retail, steel, and two wheelers. A US $7.1 billion multinational group based in Mumbai, India, Mahindra employs more than 112,000 people in over 79 countries. In 2010, Mahindra was named among the Forbes Asian Fab 50 and the Credit Suisse Great Brands of Tomorrow. Its flagship company Mahindra & Mahindra Limited has recently earned the distinction of being the only Indian automobile manufacturer to feature in the top 10 list of the Carbon Disclosure Leadership Index in India,- 2010, created by the Carbon Disclosure Project (CDP). For more information, visit www.mahindra.com
