Jan 31, 2007, 06.25 PM | Source: Moneycontrol.com
M&M Group net doubles in Q3 F2007. Up by 42% excluding exceptional & special items
Mahindra & Mahindra Limited today announced the unaudited financial results for the third quarter ended 31st December 2006.
Q3 – Group Consolidated Results:
The Gross Revenues and Other Income for the third quarter ended 31st December, 2006 of the Consolidated Mahindra Group at Rs. 4757.4crores (USD 1.1 bln) grew by 30.7% over Rs. 3639.8 crores (USD 806 mln) for the third quarter last year. The profit before exceptional items and tax for the current Q3 is Rs. 548.4 crores (USD 124.2 mln) as compared to Rs. 390.1 crores (USD 86.4 mln ) in Q3 F2006 – a growth of 40.6%. This is due to the excellent performance of both the parent company and group companies. There was an exceptional profit of Rs 196.9 crores in the quarter that accrued to the Group out of the successful Qualified Institutional Placement of Shares by Mahindra Gesco Developers Ltd. There was also an exceptional profit of Rs 19.8 crores on the slump sale of Cable Joining kit business of one of the subsidiaries of the group. The consolidated group Profit after considering exceptional items and tax and after deducting minority interests for the current quarter is Rs. 530.6 crores (USD 120.1 mln) as against Rs. 262.5 crores (USD 58.2 mln ) earned in the same period last year – a growth of 102.1%.
YTD – Group Consolidated Results:
The Gross Revenues and Other Income for the period ended 31st December 2006 grew by 39.4% to Rs. 13554.5 crores (USD 3.1 bln) from Rs. 9724.4 crores (USD 2.2 bln) for the same period last year. The profit before exceptional items and tax for the current 9-month period is Rs. 1645.3 crores (USD 372.5 mln) as compared to Rs. 981.2 crores (USD 217.4 mln) in the corresponding period previous year – a growth of 67.7%. The consolidated group Profit after exceptional items and tax and after deducting minority interests for current 9-month period is Rs. 1330.9 crores (USD 301.3 mln) as against Rs. 670.4 crores (USD 148.5 mln ) earned in the same period last year – a growth of 98.5%.
Q3 – M&M Stand Alone Results:
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the third quarter ended 31st December 2006 at Rs.2942.8 crores registered a growth of 16.0% over Rs.2537.0 crores for the third quarter of the previous year. Profit before exceptional items and taxation for the current quarter is Rs.315.4 crores as compared to Rs.270.6 crores in Q3 last year. The Net Profit for the quarter after considering exceptional items and taxation is Rs.241.7 crores as against Rs.233.5 crores in Q3 previous year. The operational profit after tax for Q3 F2007 is Rs 242.0 crores as compared to 179.1 crores in Q3 last year – an increase of 35.1%. The improvement in profits is due to strong sales performance by both the Automotive and Farm Equipment Sectors of the company and continued focus on operating and financing costs.
YTD – M&M Stand Alone Results:
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. during the period ended 31st December 2006 is Rs. 8381.5 crores as against Rs. 6818.7 crores during the corresponding period last year – a growth of 22.9%. Profit before exceptional items and tax for the current year-to-date is Rs. 1007.4 crores – an increase of 55.3% over Rs.648.5 crores in the corresponding period last year. The Net Profit for the current Year-to-date after considering exceptional items and taxation is Rs.832.3 crores as against Rs. 535.9 crores in the corresponding period previous year. The Company’s operational profit after tax for the period ended 31st December, 2006 at Rs 656.4 crores increased by 35.8% over Rs 483.5 crores in the same period last year
The UV segment witnessed a growth of 15% during Q3 F2007 as compared to the corresponding quarter last year. The Company’s UV sales volume grew by 12.6% from 29,594 in Q3 last year to 33,312 in the current Q3. The All New Scorpio which was launched in the beginning of this financial year continued to do well in the third quarter and the Company is increasing capacity to meet the increased demand for it. Maxi Truck launched in the beginning of the third quarter, was very well accepted by the market and has helped the company in strengthening its leadership position in the pick-up market. The Company remains the market leader in the UV segment with a share of 49% in Q3 F2007.
During the quarter the company also signed a memorandum of understanding with Renault to establish a long-term strategic partnership for creating a greenfield site with capacity of 500,000 units per year within 5 years for offering innovative products to customers in India.
In the 4MT LCV segment, the sales of Mahindra vehicles increased by 40.6% to 2,166 in Q3 F2007 against an almost flat growth in industry sales. The Company had a market share of 20.9% as against 14.9% in Q3 last year.
In the large 3-wheeler segment, while the industry volumes declined during the quarter by 40%, the company’s volumes declined by only 36% to 3163 nos. The market share of the company improved from 42.7% in Q3 last year to 45.4% during the current quarter.
The Company’s vehicle export saw a strong growth of 36.5% with the Company exporting 1,954 vehicles in Q3 F2007 as compared to 1,432 vehicles exported in Q3 last year.
Farm Equipment Sector:
The demand conditions in the third quarter continued to be encouraging. The industry sales during the quarter was 85537 nos. as compared to 74183 nos. during the same period last year - a growth of 15%. As against this, the company sales grew by 18% to 26,644 tractors as compared to 22,565 tractors sold in Q3 last year. The company continued to be a market leader with a market share of 31.2%.
The exports of tractors in Q3 were 1486 nos. as against 1453 nos. last year.
The Engine sales was at 5185 engines (including engines captively used for DG set manufacturing) in the third quarter against 4257 engines sold last year in the same period - a growth of 22%.
The Group comprised of 61 Subsidiaries, 4 Joint Ventures and 15 Associates as on 31st of December 2006. In Q3 F2006, the major Group companies like Tech Mahindra, Mahindra Finance, Mahindra Holidays, Mahindra Gesco, etc. returned a significantly improved performance over Q3 last year. The performance of Tech Mahindra, with a Revenue growth of 131% and PAT growth of 122% during the quarter, was truly outstanding.
The Indian economy continues to do very well with economic growth accelerating to 9.1% in the first half of current fiscal after averaging an impressive 8% in the previous three years. The acceleration was powered largely by a robust double digit expansion in both manufacturing and service sector activities. Though volatility of exchange rates and input costs are a cause for concern, our outlook for the rest of the year remains positive.
Note: Translation of rupee to dollar is a convenience translation at the respective period end exchange rate.
Sourced From: Adfactors Public Relations Pvt Ltd
M&M stock price
On April 29, 2016, Mahindra and Mahindra closed at Rs 1331.75, down Rs 11.6, or 0.86 percent. The 52-week high of the share was Rs 1441.45 and the 52-week low was Rs 1092.00.
The company's trailing 12-month (TTM) EPS was at Rs 50.46 per share as per the quarter ended December 2015. The stock's price-to-earnings (P/E) ratio was 26.39. The latest book value of the company is Rs 310.09 per share. At current value, the price-to-book value of the company is 4.29.