M&M profit rises

M&M has now recorded income from operations in the first nine months of the current fiscal to the tune of Rs 2465.62 crore as against Rs 2410.70 crore in the corresponding period last year. The company had closed fiscal 1997-98 with a turnover of Rs 3371.73 crore.

Profit after tax has, however, dipped from Rs 174.72 crore in the first nine months of 1997-98, to Rs 146.07 crore in the first nine months of 1998-99. The profit after tax for 1997-98 was Rs 251.46 crore, which means that the company would really need to put up a stellar performance in the fourth quarter to better last year’sperformance.

According to the company, it has improved its market share in the utility vehicle segment to 57 per cent in the first nine months from 50.1 per cent during the same period last fiscal.

Even though the utility vehicles industry witnessed a decline of 19.7 per cent in the first nine months of the fiscal, M&M succeeded in restricting its fall to 8.7 per cent. The company has been able to improve its market share in the tractor segment as well from 27.4 per cent to 27.6 per cent.

Vehicle sales during the first nine months were 50,319 units as against 55,234 units in the corresponding period of the previous year. Tractor sales on the other hand, saw a marginal rise, up from 49,461 units to 50,569 units.

In the third quarter alone, the company sold 16,779 vehicles as against 19,240 vehicles in the third quarter of 1997-98. Tractor sales in the third quarter were 18,203 units as against 15,606 units in the corresponding period last year.

The increase in production volumes as well asproductivity is being attributed to the implementation of the new wage agreement with the tractor workmen’s union. "This has enabled the company to increase tractor production in the third quarter by 19 per cent as compared to the second quarter and 71 per cent as compared to the first quarter of the current fiscal," M&M has said in a press statement.