Homegrown auto major Mahindra & Mahindra on Monday reported 6.02 per cent increase in standalone net profit at Rs 583.73 crore for the fourth quarter ended March 31, 2015-16, driven by robust sales in the utility vehicle segment. It had posted net profit of Rs 550.56 crore in the January-March period of 2014-15, M&M said in a regulatory filing.
The company’s net sales during the quarter under review stood at Rs 10,666.43 crore, up 14.83 per cent from Rs 9,288.88 crore in the year-ago period. Along with its wholly-owned arm Mahindra Vehicle Manufacturers Ltd, M&M sold 69,082 utility vehicles during the quarter, while tractor sales stood at 41,129 units in the domestic market.
For the financial year ended March 31, the company posted consolidated net profit of Rs 3,211.26 crore, up 2.35 per cent, from Rs 3,137.47 previous year. Net sales of the company rose 10.14 per cent to Rs 69,785.97 crore for the year ended March 31, as against Rs 63,361.96 crore in the 2014-15 fiscal.
On the outlook, M&M said that while the macroeconomic environment in India continues to improve, the pace of growth recovery has thus far remained modest and patchy.
“With external demand remaining sluggish, a rural economy battered by two consecutive drought years, gridlocked infrastructure projects and a private corporate sector reeling under the burden of slowing sales and rising balance sheet stress, urban consumption demand, FDI and public investments and public capital expenditure were the only drivers of growth left standing through most of the year,” it said.
Growth in domestic sales of motorcycles and tractors turned positive in the past quarter, suggesting that the rural economy may now be stabilising, albeit at low level, it added. With a robust monsoon season predicted for this year, rural demand will in all likelihood, pick up pace in the coming quarters,” the company said.
“Even as we remain alert to the downside risks emanating from a challenging global environment and domestic banking distress, the company’s outlook on the economy remains upbeat and it looks to the future with confidence,” M&M said. The company’s board, which met today, recommendation of a dividend of Rs 12 (240 per cent) per share of the face value of Rs 5 each.
The board also approved an enabling resolution to raise funds by way of issuance of debt securities on private placement basis for an aggregate amount not exceeding Rs 5,000 crore. Mahindra stock was trading at Rs 1,322, down 0.98 per cent, on BSE.