M&M Q2 net races 242% to Rs 703 crore on strong sales
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Last Updated: Thursday, October 29, 2009, 20:46
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.

Bureau Report

First Published: Thursday, October 29, 2009, 20:46

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