Utility Vehicles manufacturer Mahindra & Mahindra has reported a 140% rise in net profit for the fiscal year 2003-2004 to €65.75 million (INR3.49 billion). Net revenues shot up 31% from €852.3 million (INR45.17 billion) to €1.116 billion (INR59.15 billion).

“The improvement in profits is mainly on account of three key factors: substantial increase in volumes, continuous focus on cost improvement and sharp reduction in interest costs,” said M&M executive director (finance) Bharat Doshi.

At 117,000 units, the company sold 35% more vehicles during the year. Most were the Scorpio SUV and utility vehicle sales increased 34% to 91,434 units. Tractor sales increased to 49,576 from 47,028 the previous year.

The company retired some of its high interest burden during the year, reducing it from €16.4 million (INR869 million) to €9.73 million (INR516 million) in 2003-2004.

Due to the upbeat results, the company board has recommended a dividend of 90% (INR9) per share and a total outgoing of €22.22 million (INR1.18 billion) including taxes.

Deepesh Rathore / Tilak Swarup