The Hindu Business Line : Auto, farm sales drive M&M Q1 net up 40 pc

Good sales performance by both the automotive and farm equipment sectors, containment of operating expenditure, and reduction in financial costs have resulted in the improvement of profits, the company said in a statement on Thursday.

M&M's gross sales and income from operations stood at Rs 2,049 crore compared to Rs 1,686 crore for the same period in the previous year.

Net sales and income from operations registered a 27 per cent growth at Rs 1,811 crore (Rs 1,423 crore).

Further, the company said, utility vehicle sales grew by 5.4 per cent to 24,845 vehicles.

The late postponement of the decision to introduce Bharat Stage 2 vehicles in some States by the Government affected sales growth to some extent, the statement said.

The demand for commercial vehicles in general was sluggish, it added.

The market for LCVs with load carrying capacity of up to four MT witnessed negative growth of 11.3 per cent.

The company registered sales of 1,808 LCVs in the quarter under review.

M&M's exports grew by 138 per cent with 856 vehicles being exported compared to 360 vehicles earlier.

The tractor industry witnessed a growth of 8.7 per cent during the period, with sales of 58,665 tractors.

M&M saw 28.4 per cent growth in sales of tractors at 19,013 tractors (14,807 tractors).

"With the monsoon being normal, we hope that the economic growth will continue and will augur well for the company. However, keeping in mind the volatility in prices of oil and raw materials like steel, the company will continue to be vigilant on cost reduction and efficiency improvements," the statement said.

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