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M&M posts Rs 2.67-cr net loss


Our Bureau

MUMBAI, Oct. 30

MAHINDRA & Mahindra Ltd (M&M) today reported a net loss of Rs 2.67 crore for the second quarter ended September 30, 2001, against a net profit of Rs 13.17 crore of the previous corresponding period.

The loss was, however, lower than the Rs 29.62-crore loss incurred by the company in the first quarter of current fiscal. M&M's operating profit in the just-ended quarter rose to Rs 45.98 crore from the first quarter's corresponding Rs 16.20 crore, while its profit before interest, depreciation, exceptional item and tax was Rs 59.28 crore as against the Rs 30.61 crore of the preceding quarter.

The net sales/income from operations in the second quarter was Rs 761.10 crore (Rs 839.94 crore for the year ago period). Other income dipped to Rs 13.30 crore (Rs 24.20 crore).

Total expenditure amounted to Rs 716.12 crore (Rs 803.88 crore). Interest was Rs 22.14 crore (Rs 16.16 crore) and depreciation Rs 32.93 crore (Rs 33.92 crore).

``After considering an exceptional item charge for voluntary retirement scheme of Rs 8.37 crore, the loss before tax for the current quarter is Rs 4.17 crore,'' an official statement said, pointing out further that there is a Q2 tax credit of Rs 1.50 cro re.

For the first half of the current fiscal, M&M had a cumulative loss of Rs 21.79 crore (net profit of Rs 47.45 crore) on a net sales/income from operations of Rs 1,446.22 crore (Rs 1,688.43 crore).

During Q2, the company sold 13,133 utility vehicles (UVs), a growth of 8 per cent over the year ago level of 12,173 units. In the first quarter of 2001-2002, M&M had sold 12,149 UVs. The Q2 market share in UVs was 44.6 per cent, the statement said.

In light commercial vehicles (LCVs), the Q2 sales touched 1,444 units (1,473 units), giving M&M a market share of 12.3 per cent.

``The tractor industry witnessed negative growth in the second quarter. Uncertainty and pressures on agri incomes kept the mood of the farmers subdued in Q2,'' the statement said. During the period, M&M sold 13,191 tractors (20,358 tractors).

Its market share in tractors was 30.2 per cent. ``Currently, there are definite signs of a demand pick-up during the festival season and this augurs well for tractor sales in the second half of the year,'' the statement said.

Related links:
M&M cuts loss in first quarter

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