Mamp;M net dips 9 pc

Gross sales grew by 2.3 per cent to Rs 4,224 crore as against Rs 4,127 crore recorded in the previous fiscal. The company received Rs 107 crore by selling off its stake in its joint venture with Ford Motors which was making Escort model of luxury cars.

Earnings per share dropped to Rs 21.85 from Rs 24.33 last year, while the cash earnings per share was lower at Rs 34.69 Rs 35.32 last fiscal.

The company8217;s board of directors, which met in Mumbai on Monday, maintained the dividend at Rs 5.50 per share.

8220;Our grip on therural market, coupled with the wide range of products had enabled us to arrest the impact of the acute recessionary trend as compared to the rest of the industry,8221; Mamp;M managing director Anand Mahindra said in a statement following the board meeting here today.

The year ended with the company8217;s tractor division increasing its market share to 27.2 per cent. The automotive division, however, sold fewer vehicles than last year. Though the company8217;s market share grew to 57.5 per cent from 51.73 per cent, volumes dropped from 76,954 vehicles to 70,548 vehicles during 1998-99.

Automobiles Peugeot, Mamp;M8217;s earlier collaborator for diesel engines, commenced buying engine components from the company during the year, resulting in exports of Rs 2,500 sets to France.

Given the recessionary environment, the company initiated a thrust on increasing its spare parts business and consequently spare parts sales rose by 27 per cent from Rs 80.82 crore in the previous year, Mahindra said.

During the month of April thisyear, Mamp;M8217;s automotive division sold 5,228 utility vehicles as against 4,258 in the previous year. The continued to grow and stood at 64.8 per cent, he added.

The tractor division sold 5,605 tractors during the first month of the current year as against 6,151 sold in the corresponding period last year with market share rising to 28.7 per cent.