Mahindra and Mahindra has recorded a splendid 145% rise in net profit for Quarter 1 of 2004-05 fiscal year at Euro 18.26 million (INR 1.04 billion) against Euro 7.47 million (INR 425 million) in the corresponding quarter of the previous fiscal. Net revenue from operations increased 42 % to Euro 250.12 million (INR 14.232 billion) from Euro 176.3 million (INR 10 billion).
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The improved performance is a reflection of, says the company, a steep increase in sales volumes of tractor and automotive segments while a decrease in debt interest costs helped by early payment of high-interest loans. Hence interest costs have decreased from Euro 29.9 million (INR 1.7 billion) to Euro 3.09 million (INR 176 million) in the same quarter.
Volume growth in the tractor segment was 60.3 per cent to 16,048 units in the period. M&M managed to enhance the export component of tractors by 20.1 per cent to 1,241 units. Mahindra has committed to increase production of tractors at its satellite plant from the current capacity of 7,000-10,000 units per year to 25,000 by March 2005.
Encouraging demand for Mahindra Scorpio has compelled M&M to push up its production by an expected 25 % by this year-end. Production of LCVs has doubled from 500 to 1,000 units per month. Hence overall, production increase will be up by around 40% at its Nasik plant.
Deepesh Rathore / Tilak Swarup
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