Mahindra & Mahindra today posted 50 per cent jump in net profit at Rs 1,155 crore for the March quarter, against a profit of Rs 770 crore in the year-ago period, driven by robust sales across utility vehicle and tractor segments.
The The Anand Mahindra-led automaker also announced a capex of Rs 15,000 crore for the three years till FY21.
Its revenue and other income rose by 24 per cent to Rs 13,355 crore, compared with Rs 10,795 crore.
For financial year 2017-18, the company posted a net profit of Rs 4,623 crore, up 18 per cent from Rs 3,924 crore in 2016-17.
Revenue for the year rose to Rs 48,529 crore, up 14 per cent from Rs 42,584 crore in 2016-17.
"We had the best quarter ever. Our auto segment grew 20 per cent, while the tractor segment grew 44 per cent, the highest ever growth in the last 21 quarters," said Pawan Goenka, managing director, Mahindra & Mahindra.
Besides, the company also also clocked the highest ever revenue and profit for both the segments in the March quarter, he added.
The firm sold 156,453 vehicles in the March quarter, up 20 per cent from 130,778 units sold in the same period last year, while it sold 66,885 tractors, up 44 per cent.
The Mumbai-based firm exported 12,459 units, up 14 per cent from 10,939 units in the year-ago period.
For FY18, improvement in overall economic sentiment, two consecutive years of normal monsoon, government's focus on development of agri and rural sectors, with continued investment in infrastructure, along with easy availability of affordable finance, helped drive the demand for the automotive as well as the tractor industry, Goenka said.
The company is planning a capex of Rs 15,000 crore for the three years till FY21, he said, adding, which is Rs 3,000 crore more than the Rs 12,000 crore announced last year for the period up to FY20.
"This (capex) includes investments in product development, some new initiatives which were not planned last year, as well as investment in the US. We are also investing in BSVI and electric vehicles, among others," he said.
"This is also on the assumption of certain mergers and acquisitions, which could be much more than what we are planning today, or much less. So, if we find some thing really exciting, some thing really big to happen, then it (capex) can go beyond Rs 15,000 crore," Goenka added.
The Mahindra group globally for the first time crossed one-million sales of vehicles and tractors combined, he said, adding, "The company plans to launch three new products in the current fiscal."
"We expect the momentum that the industry had in FY18 to continue in FY19, with growth expected to come from both automotive as well as tractor segments. We are looking at FY19 with lot of cautious optimism. We hope to repeat our previous year's performance this year as well," Goenka said.
But the company is keeping a close watch on the rising oil and commodity prices, as well as the interest rate in the second half, he said.
"This year, we're looking at passenger vehicle growth to cross 10 per cent for the first time in eight years. The commercial vehicle growth is expected to be 10-12 per cent, with LCVs (light commercial vehicles) growing higher than the HCVs (heavy commercial vehicles), which may grow at 10 per cent," Goenka said.
The electric vehicles have also seen a good volume growth, though it is difficult to put a number to it, he said, adding, "We see the overall demand going up from fleet operators and aggregators."
For tractor, he pegged the full-year growth to be around 8-10 per cent.
Meanwhile, the company's board, which met today, recommended a dividend of Rs 7.50 per share.
The company's scrip ended 2.26 per cent higher at Rs 868.80 a piece on the BSE today, against 0.61 per cent decline in the benchmark.
Disclaimer: No Business Standard Journalist was involved in creation of this content
