Mahindra and Mahindra Ltd, India’s biggest tractor and utility vehicle, said its consolidated profit for the fourth quarter of 2006-07 rose 21% to Rs674.3 crore (before tax and exceptional items), on the back of more sales of tractors and utility vehicles, and growth in contribution from subsidiaries in businesses as diverse as auto components, real estate, technology and financial services.
“Our non-auto business now contributes 51% to the net profit and 39% to the total revenue,” said Anand Mahindra, vice-chairman, Mahindra and Mahindra .
Mahindra and Mahindra ’s consolidated revenue for the fourth quarter was Rs5,882.3 crore, a 40.6% growth over the Rs4,184 crore revenue it registered in the corresponding quarter last year. In fiscal year 2007, it registered revenue of Rs19,436.8 crore, 40% more than the Rs13,908 crore revenue it earned in 2005-06. And profit after exceptional items, adjustments and tax were Rs1,497 crore in 2006-07, against Rs1,269.7 crore last year.
On a stand-alone basis (just the auto business) Mahindra and Mahindra ended 2006-07 with Rs11,558 crore in revenue, a growth of 22.3% over last year’s Rs9,451 crore (normalised profit after tax grew 36% to Rs895 crore). The company plans to launch two new platforms for vehicles apart from one for the Ingeno, the car that it plans to make at its Nashik plant. “We have started working on a new sports utility vehicles platform which will be slightly up-market and we are halfway through (developing) our mass market cargo and passenger vehicles platform,” said Pawan Goenka, president, automotive sector, Mahindra and Mahindra.
In 2007-08, Mahindra and Mahindra expects a slowdown in demand for tractors that contribute around 65% of the total revenue of its automobile business to around 6-8% from 20% last year.
Mahindra and Mahindra has a joint venture with Renault of France to manufacture and sell the Logan, and another alliance with Renault and Nissan Motor Co. for a new manufacturing facility in Tamil Nadu.