| Sweet sting
Mumbai, July 28: Mahindra & Mahindra, the utility vehicles and tractor maker, has reported a 445 per cent jump in profits as cost cutting measures and higher volumes have started paying off.
The company posted a net profit of Rs 42.5 crore for the quarter ended June 30, 2003, against Rs 7.8 crore recorded in the same period last year.
The main bulwark for the improved performance came from sales of utility vehicles which rose 39 per cent at 18,345 units. The company attributed most of this success to the strong market demand for the Scorpio, which completed one year this quarter.
Higher dividends received from group subsidiaries operating in the IT and financial services sectors also jacked up other income during the quarter.
The company board, which met today, has approved a proposal to merge two subsidiaries — Mahindra Information Technology Services and Mahindra Eco Mobiles — with M&M with effect from July 1, 2003.
The merger would help reflect the assets of the company at their true values, reduce the number of subsidiaries and enhance the financial and fiscal efficiencies of the group, M&M said.
The company has reported a 20 per cent growth in net sales and income from operations at Rs 992.89 crore in the reporting quarter against Rs 828.43 crore in the corresponding previous quarter.
The Maxx and its variants and the recently introduced Bolero Invader also sold well during the quarter, helping the company to corner almost half of the utility vehicles market. M&M said its utility vehicles market has risen from 48.7 per cent to 50.2 per cent.
Eicher net rises 13.2%
Commercial vehicle maker Eicher Motors has posted a 13.2 per cent rise in net profit during the quarter ended June 30, 2003, due to higher other income and reduction in interest cost.
The net profit rose to Rs 6.08 crore from Rs 5.37 crore in the same period last year.
Net sales went up by 21.8 per cent during the April-June quarter to Rs 149.92 crore from Rs 123.08 crore a year ago, a company statement said.
Eicher’s vehicle sales grew by 22.2 per cent during the quarter to 3,059 units.