Mahindra & Mahindra clocked a 26 per cent rise in net profit at Rs 836 crore for the December quarter on the back of robust sales of its passenger utility vehicles.

Net sales in the third quarter were up 29 per cent at Rs 10,643 crore.

M&M said that its 100 per cent sourcing subsidiary Mahindra Vehicle Manufacturers Ltd (MVML) was a critical part of its business and the combined results of the company and MVML will alone provide a comprehensive view of its performance.

M&M and MVML together reported a 30 per cent rise in net profit at Rs 915 crore (Rs 706 crore). Total revenues were up 28 per cent at Rs 11,522 crore (Rs 9,036 crore).

The growth in the profits, despite the relentless increase in material costs, is due to a good volume performance by the automotive sector and tight control on expenses, the company said.

In the passenger utility vehicle segment, the company sold 70,483 units, a growth of 36 per cent.

All products in its utility vehicle portfolio did well along with the recently launched premium SUV Ssangyong Rexton. The company has a market share of 47.9 per cent in the segment. In the car segment, it sold 3,814 units of Verito and exported 6,500 vehicles in the December quarter.

Tractor business logged moderately higher sales at 62,522 units (62,342). The company exported 2,459 tractors. The engine business revenue grew 11 per cent to Rs 222 crore against Rs 200 crore logged in the same period last year.

On Friday, the company scrip closed 1.41 per cent lower at Rs 882.80 on the BSE.

(This article was published on February 8, 2013)
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