M&M Group revenues touch USD 4.5 bln

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 The Board of Directors of Mahindra and Mahindra Limited today announced the results for the quarter ended 31^st March 2007 for the company and the audited results for the year ended 31^st March 2007 for the company and for the consolidated Mahindra Group.

  

Q4 - Group Consolidated Results:

 

The Gross Revenues and Other Income for the fourth quarter ended 31^st March 2007 of the Consolidated Mahindra Group at Rs.5882.30 crores (USD 1.3 billion) grew by 40.6% over Rs.4183.9 crores (USD 936.8 million) for Q4 last year.  The profit before exceptional items and tax for the current Q4 is Rs.674.3 crores (USD 155.1 million) as compared to Rs.557.9 cores (USD 124.9 million) in Q4 F2006 - a growth of 20.9%.  This is due to the excellent performance of both the parent company and the group companies.  The quarter results include a one time exceptional charge towards an upfront payment of Rs.524.9 crores to a customer by Tech Mahindra Ltd . - a group subsidiary.  The consolidated group Profit for the current quarter after considering exceptional items, prior-period adjustment and tax and after deducting minority interests is Rs.166.2 crores (USD 38.2 million) as against Rs.599.3 crores (USD 134.2 million) earned in Q4 last year.

 

Year - Group Consolidated Results:

 

The Gross Revenues and Other Income for the year ended 31^st March 2007 grew by 39.7% to Rs.19436.8 crores (USD 4.5 billion) from Rs.13908.4 crores (USD 3.1 billion) in last year.  The profit before exceptional items and tax for the current year is Rs.2319.7 crores (USD 533.6 million) as compared to Rs.1539.1 crores (USD 344.6 million) last year - a growth of 50.7%.  The consolidated group profit for the year after exceptional items, prior-period adjustments and tax and after deducting minority interests is Rs.1497.1 crores (USD 344.4 million) as against Rs.1269.7 crores (USD 284.30 million) earned in the previous year -  a growth of 17.9%.

  

Q4 - M&M Stand Alone Results:

 

The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the fourth quarter ended 31^st March 2007 at Rs.3176.5 crores registered a growth of 20.6% over Rs.2632.8 crores for the fourth quarter of the previous year.  Profit before exceptional items and taxation for the current quarter is Rs.308.3 crores as compared to Rs.241.0 crores in Q4 last year.  There was an exceptional profit of Rs.10 crores during the quarter on account of sale of certain long terms investments.  During the quarter there was also a prior-period charge of Rs.19.19 crores (net of tax), arising out of certain refinements in the actuarial assumptions for providing gratuity and accrual of post-retirement medical benefits.  The Net Profit for the quarter after considering exceptional items, prior-period adjustments and taxation is Rs.236.0 crores as against Rs.321.2 crores in Q4 last year.  The normalised profit after tax (see attached table) for the current quarter is Rs.238.6 crores as compared to Rs.175.6 crores in Q4 last year - an increase of 35.9%.  The improvement in profits is due to strong sales performance by both the Automotive and Farm Equipment Sectors of the company and tight control on costs.

 

Year - M&M Stand Alone Results:

 

The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. during the year ended 31^st March 2007 is Rs.11558.0 crores as against Rs.9451.4 crores during the corresponding period last year - a growth of 22.3%.  Profit before exceptional items and tax for the current year is Rs.1315.7 crores - an increase of 47.9% over Rs.889.5 crores in the previous year.  The Net Profit for the year after considering exceptional items, prior-period adjustments and taxation is Rs.1068.4 crores as against Rs.857.1 crores last year.  The Company's normalised profit after tax (see attached table) for the year at Rs.895.2 crores increased by 35.8% over Rs.659.2 crores last year.

 

The Directors have recommended a final dividend at 25% and also a special dividend of 15% aggregating to Rs. 4 per share. The special dividend is being recommended in the light of the very successful listing of Tech Mahindra Ltd. equity shares on the stock exchange. The final dividend together with the interim dividend of 75% declared in March 2007 will absorb a sum of Rs. 324.73 crores (previous year Rs. 278.19 crores for a total dividend of 100%) and will be paid to those shareholders whose names stand registered in the books of the company as on the book closure date.

 

Automotive Sector:

 

In F2007, the company continued to dominate the utility vehicles segment with the market share of 46.6%.  The company sold 127856 utility vehicles as against 114694 nos. sold last year - a growth of 11% as against an industry growth of 14%.  The All New Scorpio launched in the beginning of the financial year continued to do very well in the market place.  Maxi Truck launched in Q3 of current year has been accepted very well by the market and has helped the company in strengthening its leadership position in the pick-up segment.

 

In the large three-wheeler segment, the company sold 14146 nos. against 18112 last year - a decline of 21.9% which is however much lower than the industry decline of 28.3%.  Consequently, the company's market share during the year improved from 41.6% last year to 45.3%.  In the smaller three-wheeler segment, which the company had entered in F2006 with its Champion Alfas, the company sold 19554 nos. in the current year against 4307 nos. sold in the previous year.  The company commenced the manufacture of the Logan, a product of its joint venture with Renault , in the last quarter of the year.

 

Over the last three years the Company has been introducing its vehicles into many new countries including Europe, Middle East, South America and South-East Asia by adapting unique business models for each country.  The company launched a pick-up version of the Scorpio in South Africa during the year, becoming the first Indian automotive company to launch a product internationally outside India for sale.  These initiatives resulted in a strong growth in the company's export volumes from 5534 in the previous year to 8021 in the year under review - a growth of 44.9%.

 

During Q4 F2007 the company sold 39879 utility vehicles against 33654 nos. sold in Q4 last year - a growth of 18.5%.  The sale of large three-wheelers in Q4 F2007 was 3015 nos. as against 4468 nos. sold in Q4 last year.  The sales of Alfas at 6808 nos. in Q4 F2007 grew by 155% over Q4 F2006.

 

Farm Equipment Sector:

 

For the year as a whole, the tractor industry sales were 318317 nos. against 262621 nos. last year resulting in a growth of 21.2% over the previous year.  The company sold 95006 tractors against 78048 tractors sold last year, a growth of 21.8%.  The company maintained its full year domestic market share at 29.9% thus consolidating its leadership position for the 24^th consecutive year.

 

During the quarter, tractor industry sales were 78696 nos. against 75548 nos. during the same period last year, registering a growth of 4.2%.  The company sold 21519 tractors during the current quarter as compared to 19374 in Q4 last year - a growth of 11.1%.  The company ended the year with a lean, healthy pipeline with dealer stocks and outstandings amongst the lowest in the industry.

 

For the full year, tractor exports were 7525 nos. as compared to 6981 nos. in the previous year, registering a growth of 8.0%.

 

The company continued to grow its Engine business by selling 24141 engines against 15776 engines sold last year - a growth of 53%. 

 

Group Companies:

 

The Group comprised of 75 Subsidiaries, 4 Joint Ventures and 10 Associates as on 31^st March 2007.  In F2007, the major group companies like Tech Mahindra, Mahindra Finance, Mahindra Holidays and Mahindra Gesco, had a significantly improved performance over the previous year.  The performance of Tech Mahindra, with a 130% growth in Revenues and a 160% growth in profit before exceptional items and Mahindra Holidays with a 54% Revenue growth and a 100% profit growth, deserve a special mention.

 

Outlook:

 

Indian economy has sustained its broad based growth momentum for the fourth year in succession.  Powered by robust industry and services sector performance, GDP growth is estimated at 9.2% during F2007.  The monsoon is expected to be close to normal in the coming year.  However, high interest rates, moderation in credit growth and uncertainties on the inflation front are worrisome factors.  Our outlook for the year ahead, on balance, is generally 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