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Updated: 30/10/2009 | 12:42 AM IST
M&M's Q2 net jumps 242% on strong sales, low cost
Ketan Thakkar
Friday, October 30, 2009 (Mumbai)
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India's largest tractor and utility vehicle maker, Mahindra & Mahindra, on Thursday posted record breaking numbers for the second quarter on the back of a 44 per cent increase in utility vehicle sales and a 27 per cent growth in tractors sales.

M&M said its net profit for the quarter ending September 30, 2009, soared 242 per cent to Rs 703 crore from Rs 206 crore a year earlier. During the quarter, M&M’s net sales jumped 40 per cent at just under Rs 5200 crore while reporting highest ever EBITA marging at 18.2 per cent.

"We are very excited with the results in terms of our financial and market performance. What M&M has done within the context of the industry and how we have got financial results out of it are very good for us," said Pawan Goenka, president-automotive of  Mahindra & Mahindra.

Going forward maintaining these strong volumes and healthy margins would be a big challenge as raw material prices are on their way up and possible competition from Tata's Crossover, but M&M says they are prepared.

The company is going ahead with its planned capex of Rs 6,500-7,000 crore over the next three years. The company is also open to divesting stake in M&M vehicle manufacturing to meet a part of its fund raising plans of Rs 1,200-1,300 crore.

The company's immediate product focus will be on the entry to the US market in early 2010 and its new global SUV platform that is also coming next year.

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