Mahindra & Mahindra declared fourth quarter net profit up 44%, ed buoyed by a fall in tax expenses and a one-time tax gain.
Mahindra & Mahindra, India’s most important sport-utility vehicle maker, declared a January-March net profit of INR8.74 billion in the January-March period, compared to INR6.07 billion a year earlier. Sales were up 39% from INR66.34 billion to INR92.41 billion. Analysts expected the company to post a net profit of INR6.06 billion on sales of INR81.92 billion.
The increase of profits is due to good volume performance for both tractors and vehicles, and also tight cost control on expenses. The company sold a total of 202,217 passenger utility vehicles, up 19% in FY12. This year was the third consecutive one the company was the largest tractor company with sales of 236,666 tractors against 214,325 tractors sold in 2011, up 10%.
The company also exported 29,176 vehicles in Fy2012, compared to 17,138 vehicles in 2011, up 70%, to markets such as South America, South Africa and SAARC.