M&M Q2 net races 242% to Rs 703 crore on strong sales
Mahindra & Mahindra (M&M) on Thursday said its net profit zoomed by 242 percent in Q2 FY 10 due to easing of raw material prices and a one-time income from the sale of shares in a unit.
Mumbai: Utility vehicles major Mahindra & Mahindra (M&M) on Thursday said its net profit zoomed by 242 percent in Q2 FY 10 due to easing of raw material prices and a one-time income from the sale of shares in a unit.
After considering exceptional items and providing for
tax, the net profit for the quarter ended September 30 stood
at Rs 702.9 crore as against Rs 205.7 crore in Q2 last year, a
growth of 241.7 percent, Mahindra and Mahindra president
(Finance), Uday Phadke, told reporters here.
During the period under review, M&M sold 33,69,191
equity shares from out of its holdings in its subsidiary
Mahindra Holidays and Resorts India Ltd (MHRIL) as a part of
the latter`s IPO at a price of Rs 300 per share.
There was an exceptional profit before tax of Rs 90.8
crore arising from this sale, Phadke said.
On a stand-alone basis, the company posted gross
revenues and other income of Rs 5,188.9 crore in Q2 FY 10 as
against Rs 3,935 crore during the corresponding period last
year, a growth of 31.9 percent.
The outstanding financial results for the quarter are
largely due to a strong sales performance by both automotive
and farm equipment sectors and the company`s continued and
relentless focus on cost re-engineering and cost control, M&M
Automotive Sector President Pawan Goenka said.