Mahindra's Q3 F2015 PAT grew by 5.7% to Rs. 967 Cr
Mahindra Vehicle Manufacturers Limited (MVML), was set up as a 100% subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company. Hence, it is a critical part of its business and only the combined results of M&M and MVML (Combined Entity) can provide a comprehensive view of the company’s performance.
The Indian automotive industry continues to be sluggish with the Utility Vehicle industry degrowing by 6.1% in Q3 F2015. A delayed and deficient monsoon has also impacted the tractor industry leading to the tractor industry degrowth of 21.8% in Q3 F2015.
In this market scenario, the company is focused on product upgradation and aggressive field activities, in addition to delivering greater value through process efficiencies.
The Combined Entity has continued its leadership position in both the utility vehicle segment and the tractor segment. During the current quarter, the Combined Entity sold 49724 utility vehicles (market share 37.4%) and 56471 tractors in the domestic market (market share 39.6%). Export of tractors grew by 50.4% with 3385 tractors being exported in the current quarter as compared to 2251 tractors in Q3 of the previous year.
The Gross Revenues and Other Income of the Combined Entity for the quarter ended 31st December 2014 is Rs. 10087 crore as against Rs. 11286 crore in Q3 of the previous year. The Profit before tax for the current quarter is Rs. 1139 crore as against Rs.1188 crore in Q3 of the previous year. The Net Profit after tax grew by 5.7% from Rs. 914 crore in Q3 of the previous year to Rs. 967 crore for the current quarter.
The above results include a gain resulting from the merger of Mahindra Engineering Services Limited (MESL), a subsidiary of the company with Tech Mahindra Limited (TML). On account of the merger, the company received shares in TML in lieu of its holdings in MESL.
As required by Accounting Standard 13 – Accounting for Investments, the company has recorded the shares of TML so received, at a fair value of Rs. 359 crores (as on the appointed date). The excess of the fair value over the cost of the Company’s holdings in MESL amounting to Rs. 299 crores has been accounted for as an exceptional item. The market value of TML shares so received has since increased to Rs. 985 crores as on 12th February, 2015.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
