M&M net up 36% at Rs 570 cr

Auto major Mahindra & Mahindra today reported a growth of 36.40 per cent in net profit at Rs 570.26 crore for the quarter ended March 31, 2010, over the same period last year.

Total income rose to Rs 5,304.63 crore for the January-March quarter, from Rs 3,646.57 crore in the same period previous fiscal, auto major said in a filing to the Bombay Stock Exchange.

"The company in the current fiscal became the single largest tractor company in the world by numbers with sales of 1,75,196 tractors against 1,20,202 tractor sold last year -- growth of 45.8 per cent," the company said.

The outstanding financial results of the company for the quarter is owing to strong sales registered by both automobile and farm equipment sector, the company said.

For the year ended March 31, 2010, the company posted a consolidated net profit of Rs 2,478.56 crore, up 76.35 per cent over the year-ago period.
    
The volume and market share growth of the company was driven by strong sales for the Xylo, the new version of Scorpio and Bolero, the filing added.
    
The company continued to show robust growth for the automotive business with UV sales in the quarter growing to 59,526 units from 48,088 units in Q4 last year, a growth of 23.8 per cent.
    
Mahindra two wheelers, which commenced operations in January 2009, sold 71,600 scooters in its first full year of operations, the filing added.
     
The board of directors of the company has proposed a dividend of Rs 8.75, or 175 per cent, on ordinary (equity) share, in additon, to a special dividend of Rs 0.75, or 15 per cent, per ordinary (equity) share.
    
The special dividend is being recommended in the light of the very successful listing of Mahindra Holidays & Resorts India Ltd equity shares on the Stock Exchange.