M&M net up 15% to Rs 263 cr

Commenting on the results, M&M Managing Director, Anand Mahindra said: “We have outperformed the industry in both our core businesses. Massive efforts are on to develop new generation utility vehicles and tractors, which would further consolidate our position in the highly competitive markets.”

Domestic sales of utility vehicles rose by 9.6 per cent as against industry growth of 7.4 per cent, he said adding in farm equipment sector it sold 70,571 tractors against 69,362 units last year.

The net sales for the year does not include the turnover of Intertrade division for the full year and MSL division for the last quarter as the businesses of these divisions were divested during the year, it said adding on a like to like basis in these divisions, the net sales for the year was higher by 7.14 per cent over the previous year.

The board of directors have declared that the interim dividend of 55 per cent declared in March 2000 be treated as the final dividend for the year on an increase capital base of Rs 110.48 crore.

The company also announced an employee stock option scheme (ESOP), under which employees would be granted options of up to five per cent of the equity capital and options in respect of approximately 1.2 per cent of the equity capital which would initially be granted to the eligible employees immediately after the shareholders’ meeting.

Giving the latest production figures, the company said during the period between April 1, 2000 and May 29, 2000, 10,616 vehicles were produced asagainst 11,491 vehicles and 9,817 vehicles were dispatched against 11,157 during the same period of last year.

Both the tractor and the UV industries experienced slackness in demand due to drought conditions prevailing in some part of the country. Also, the unified sales tax rates pushed up the prices of utility vehicles thereby adveresely impacting their demand.

“However, if the monsoon is normal as forecasted, it is expected to lead to a demand revival,” the company said.