The Hindu Business Line : Mahindra Q3 net up 3.9% at Rs 242 cr

Progress report
Launch of Maxi Truck (pick-up) at the beginning of the third quarter.
Hikes prices of Mahindra Scorpio and to follow it up by a hike in Mahindra Bolero.
The company has decided to venture into the US market.

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Mumbai Jan. 31 Mahindra & Mahindra (M&M) has posted a 3.9 per cent rise in net profit at Rs 242 crore (Rs 233 crore) in the third quarter ended December 31, 2006. Gross revenues and other income registered a growth of 16 per cent at Rs 2,942.8 crore (Rs 2,537 crore).

Sales growth

Sales of the company's utility vehicle grew 12.6 per cent from 29,594 units to 33,312 units. The reason for the growth in sales is the launch of the Maxi Truck (pick-up) at the beginning of the third quarter.

The company recently hiked prices of its flagship model, Mahindra Scorpio and is to follow it up by a hike in Mahindra Bolero, said Dr Pawan Goenka, President, Auto sector, M&M.

The company remains the market leader in the utility vehicle segment with a 49 per cent market share.

Sales of Mahindra light commercial vehicles increased 40.6 per cent to 2,166 units and it has a market share of 20.9 per cent.

M&M exported 1,954 vehicles in the third quarter as compared to 1,432 units in the corresponding period last year, a rise of 36.5 per cent. The company has decided to venture into the US market and is conducting various clinic tests to meet the stringent safety and emission norms in the world's largest pick-up market, said Dr Goenka.

Farm, equipment sector

In the farm and equipment sector, company sales grew 18 per cent to 26,644 tractors while industry sales rose to 85,537 units. The company continues to be the market leader with a 31.2 per cent market share.

Focus on customer care and cost-cutting exercises were the key reasons for the sales growth, said Mr Anjani Kumar Choudhari, President, Farm and Equipment sector, M&M.

Tractor exports increased to 1,486 units as against 1,453 units in the corresponding period last year. The company has plans to build volumes in the US market where it exports 1,200-1,400 units a year, said Mr Choudhari.