In the fiscal year ended March 31, the consolidated results are a notch above the standalone M&M numbers.
MUMBAI: If auto and tractor major Mahindra & Mahindra (M&M) is pursuing a range of businesses from information technology to real estate and holiday concepts, it sure is working well on its annual grades.
In the fiscal year ended March 31, the consolidated results are a notch above the standalone M&M numbers.
Last year, consolidated net sales touched Rs 12,335 crore, up 31%, with operating profit revving up 46% over the previous year.
The non-auto business accounted for 33% of the topline and 48% of the bottomline. The bottomline got a boost from the Rs 166 crore extraordinary income from taking Mahindra Finance public.
“We are reaching a point where our consolidated results speak for itself,” said Anand Mahindra, vice-chairman and managing director, M&M. Exports continue to be the cornerstone of the standalone entity.
In the automotive sector, M&M, which drives utility, commercial vehicles and three-wheelers, while domestic volumes were down 2%, exports surged 82%.
After riding on most of the road in the Mediterranean, it has just entered Spain and Tahiti.
In tractors, both home and overseas businesses accounted for 30% of volumes, with the overall net sales up 23%. At Rs 857 crore, the total profit after tax grew 67%.
The farm equipment division is currently test-marketing the less than 30 hp Jiangling tractor made by Mahindra Jiangling China.
Mahindra said that his company’s businesses now offer a substantial play in the Indian economy, with its presence in new generation areas. The company has doubled its capital expenditure to Rs 650-750 crore for this year. Mahindra said the amount will be deployed for new products, business expansion and research & development.
There are plans to list Mahindra Systems & Automotive Technologies (MSAT), the autocomponent arm of M&M. Last year, MSAT acquired Amforge Industries’ Chakan unit.
Pawan Goenka, president-automotive business, said that with the domestic sector likely to grow around 10% this year, many of the company’s new vehicles will roll out over the next two years.
Last week, it devised the first right hand drive Logan, while the car will hit the road in the first half of 2007, he added.
The new multi-purpose vehicle Ingenio will be launched in 2008. Even its truck joint venture with US-based International Truck & Engine Corp will flag its 49 tonne vehicle in 18 months. “It is a promising area for us,” said Mahindra, of its acquisition of the Bangalore-based aero and auto engineering outfit Flexion, with clients like Bentley. So is defence the next big thing for Mahindra?
“It can’t be ruled out,” he said.
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