Monday, October 29, 2012

M&M beats street; Q2 net up 22% YoY at Rs 902 cr



Utility vehicle and farm equipment maker Mahindra & Mahindra reported a better-than-expected 22% year-on-year rise in second quarter net profit at Rs 902 crore, helped by strong automotive sales growth and higher other income, sending its shares up over 3%.

Its net sales during the three-month period were up 33% from a year ago to Rs 9,659 crore.

Analysts on an average had estimated a net profit of Rs 820 crore on net sales of Rs 9,600 crore, according to a CNBC-TV18 poll.

In July-September M&M's other income increased 30% to Rs 323 crore, which included dividend received from subsidiaries and joint ventures. During the quarter, Mahindra Defence Systems, Divine Heritage Hotels and Gables Promoters became subsidiaries of the company, it said on Thursday.

Earnings before interest, tax, depreciation and amortization (EBITDA) jumped 28 % year-on-year to Rs 1,118.9 crore, which was above analysts' forecast of Rs 1,071 crore.

In the second quarter, M&M's utility vehicle sales rose 32% to 62,751 units and has a market share of 45.4%. It also sold 4,899 Verito cars in the quarter.

Its exports in July-Sep surged 43% to 10,349 units.

However, its tractor division sales tumbled 14% to 47,065 units last quarter in the domestic market. It had a market share of 40.3% in the quarter, down from 41.2% in the year ago quarter.

Tractor sales have hit speed bumps in the last couple of quarters and the company said the domestic tractor industry de-grew 12% in Q2 due to below normal monsoon.

At 15:00 hrs, M&M shares were up 2.9% at Rs 852.90 on NSE.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal 
Head Dealer 
DENIP Consultants Pvt Ltd

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