Mumbai, May 29 (IANS) Auto major Mahindra and Mahindra (M&M) Saturday reported a 36.4 percent rise in net profit at Rs.570.3 crore for the quarter ended March 31, compared to Rs.418.1 crore in the like period a year ago.
Gross revenues and including other income during January-March quarter increased 40.3 percent at Rs.5,806.7 crore against Rs.4,139.6 crore in the previous corresponding quarter.
‘The outstanding results of the company are due to a strong sales performance by both the automotive and the farm equipment sectors,’ the company said in a statement to the Bombay Stock Exchange.
The government stimulus package, though rolled back partially, easy availability of credit for retail consumers and the government spend on rural social sector programmes helped the company record high sales.
For the whole of 2009-10, M&M net profit grew 150 percent at Rs.2,087.8 crore, compared to Rs.836.8 crore in the previous fiscal.
The company’s gross revenues stood at Rs.20,595.5 crore, up 37.5 percent from the 2008-09 figure of Rs.14,983.4 crore.
The company’s board has recommended a dividend of Rs.9.5 per share.
For 2010-11, M&M said it expected sales to be robust but cautioned about the rise in commodity prices.
‘With investments picking up in the last few months, as indicated by the sharp rise in capital goods production, and a normal monsoon forecast for the current year, the prognosis for growth in the current fiscal is positive,’ said the statement.
‘However, the rising cost of commodities and the supply constraints on certain critical components are a source of concern.’
The company earlier this week acquired Bangalore-based electric car maker REVA.