Business Daily from THE HINDU group of publications
Friday, Oct 30, 2009
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Business Daily from THE HINDU group of publications Friday, Oct 30, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Financial Performance Corporate Results - HCV/LCV/Tractors
Our Bureau Mumbai, Oct. 29 Higher sales volumes, lower raw material costs and excise duty helped Mahindra & Mahindra post its highest ever net profit of Rs 703 crore for the second quarter of this fiscal compared with Rs 206 crore in the same period last year. Net revenue was up 34 per cent to Rs 4,558 crore from Rs 3,355 crore. The company sold 55,280 utility vehicles during the quarter, a 44 per cent increase over 38,462 units last year. Tractor sales grew 32 per cent to 38,811 units. Mr Bharat Doshi, Chief Financial Officer, said there would be some “upward pressure” in raw material costs. “You will see prices firming up in the longer term,” he added. No price hike
However, M&M does not plan to hike vehicle prices. “Going forward there would be an increase of five per cent in raw material cost. We would have to consider a hike then,” said Mr Anjani Kumar Choudhari, President, Farm Equipment Sector. M&M has earmarked capital expenditure plan of Rs 7,000 crore for three years including the current fiscal. This includes the Rs 2,500-crore Mahindra Navistar commercial vehicle project at Chakan near Pune. “We will invest roughly Rs 1,000 crore for product development,” said Dr Pawan Goenka, President, Automotive Sector. He said that the first product, a medium and heavy commercial vehicle, would debut in the first quarter of next calendar. A sub-3.5-tonne truck is also part of the Chakan plan. On the Mahindra-Renault joint venture, Dr Goenka said that Logan sales were around 500 units a month. “Our business plan is to keep it at that level. We are certainly incurring losses but the figure is coming down quarter-on-quarter as we have downsized the business.” Mahindra eyes sales of 7,000 scooters this month Mahindra launches 2 gearless scooters; motorcycles coming in 18 months M&M net profit surges to Rs 401 cr More Stories on : Financial Performance | HCV/LCV/Tractors | Mahindra & Mahindra Ltd
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