MAHINDRA & MAHINDRA

The company did not disappoint and it posted a set of good numbers for Q2FY13. Buoyed by the automotive segment, the company reported a22% (YoY) rise in net profit at Rs.902 crore on a 33% rise in net sales at Rs.9659 crore. The automotive segment showed a sales growth of 58% (YoY) and sequentially, it rose 14%. On the other hand, the farm equipment segment was sluggish with sales falling 6% on a YoY and 14% on a YoY. The late monsoon and many parts of the country not receiving enough rainfall is what pushed down the farm sector. In terms of units sold, it sold 47,065 tractors v/s 54,585 in Q2FY12 and 62,751 passenger vehicles, up 32%.  Its exports were up 43%.

The company’s margins also improved , with EBIDTA at 13.8%, up from 11.2% in Q2FY12. The company remains the market leader when it comes to SUVs, and in the tractor segment, it holds a 40% market share. Last week, the company, from the Ssangyong stable, launched a new SUV, Rexton. In the last two months, M&M sales have surpassed that of Tata Motors and in the coming months, the festive demand will decide its course for FY13. The recent launch of the a new version of Verito and Quanto, mini SUVs, should help better margins and the high end Rexton, which is priced slightly lower than Toyota’s Fortuner, is expected to make Q3 much better.