MUMBAI, June 10: Mahindra & Mahindra has showed strong growth both in terms of income and profit for the year ended March 1997 in spite of a rise in interest cost to Rs 80.51 crore from Rs 48.15 crore. The directors have stepped up the dividend to 50 % from 45 % on a capital base of Rs 101.79 crore.The income of Rs 3,607.57 crore shows an increase of 24.4 % over the previous year of Rs 2,899.56 crore. The gross profit before depreciation, interest, contingencies and extra-ordinary items at Rs 491.97 crore has gone up by 33 % from Rs 369.83 crore.The depreciation will absorb Rs 62.96 crore (Rs 42.33 crore) and taxation at Rs 119 crore (Rs 116.50 crore). The profit before tax of Rs 328.33 crore shows an increase of 15.4 % from Rs 284.58 crore. The profit after tax has gone up to Rs 209.33 crore from Rs 168.08 crore, showing an increase of 24.5 %. Earnings per share (EPS) has also increased to Rs 20.56 from Rs 16.98 in the previous year. The dividend outgo (including dividend) tax will be Rs 55.99 crore against Rs 44.14 crore.Commenting on the company's performance, Anand Mahindra, managing director, said, ``Increased volumes have come mainly from rural and semi-urban markets which have consistently been our key thrust areas. With the expectation of overall economic growth pegged at 6-7 % backed by a robust increase in agricultural income, we expect to see sustained demand for our products which largely cater to the rural markets in the country.''During the year, the company produced 74,133 vehicles (excluding CKD packs) against 65,365 vehicles of the previous year, an increase of 13.4 % and sold 75,048 vehicles against 63,583 vehicles of the previous year, an increase of 18 %. The company continued to remain the market leader in the utility vehicle segment with a share of 52 %.The tractor division has established a new record with the production of 58,028 tractors against 49,651 of last year, an increase of 17 %. Tractor sales figures grossed 57,379 units against Rs 50,005 of last year, an increase of 15 %. With this increase the company continues to retain its market leadership.
