Saturday, December 31, 2011

M&M LTD = RESULTS FOR = Q2 FY 2012 = ENDING SEP,2011 = GOOD PERFORMANCE =


Mahindra & Mahindra Limited
NSE Symbol        M&M

RESULTS FOR 2ND QUARTER,FY 2012
SEPT,2011

STAND ALONE RESULTS ANALYSIS

Net Sales has grown to Rs.7306.81 cr in Q2 FY 12 – compared to Rs.6673.20 in Q1, FY 12, the preceding quarter (Up by 9.49%) – and Rs.5311.26 Cr in Q2 FY 11, the corresponding Quarter (Up by 37.57%).

Raw Materials consumption stands at Rs.4708.72 cr in Q2 FY 12 – compared to Rs.4373.02 in preceding Qtr (Up by 7.68%) and Rs.3541.24 cr in corresponding Qtr (Up by 32.97%).

Traded Goods cost stands at Rs.887.31 cr – compared to Rs.718.89 cr in preceding qtr b(Up by 23.43%) – and Rs.348.90 cr in corresponding Qtr (Up by 154.32%).

Other Expenditure  stands at Rs.   715.11 cr – compared to Rs.599.18 cr in preceding qtr (Up by 19.35%) – and Rs.531.76 cr in corresponding qtr (Up by 34.48%).

Total Expenditure has risen to Rs.6612.32 cr – compared to Rs.5946.08 cr in preceding Qtr (Up by 11.2%) – and Rs.4636.39 cr in corresponding qtr (Up by  42.62%). As we can see, expenditure has risen more than proportionately to sales.

Profit from Operations stands at Rs.748.30 cr – compared to Rs.787.46 cr  in preceding qtr (down by -4.97%) – and Rs.797.97 cr in corresponding qtr (down by -6.22%).

Other Income has risen to Rs.231.52 cr – compared to Rs.  24.87 cr in preceding qtr (Up by a huge     830.92%) – and Rs.199.77 in corresponding Qtr (Up by 15.89%).

Profit  before tax has risen to Rs.974.93 cr – compared to Rs.814.33 cr ( up by 19.72%) in preceding Qtr – and Rs.1006.79 cr in corresponding qtr, (down by -3.16%).

Tax expense stands at Rs.237.55 cr  - compared to Rs.209.45 cr in preceding qtr (up by 13.42%) – and Rs.248.30 cr in corresponding Qtr (down by -4.33%).

Net Profit  stands at Rs.737.38 cr – compared to Rs.604.88 cr (Up by 21.91%) – and Rs.758.49 cr in corresponding Qtr ( down by -2.78%).

Basic EPS stands at Rs.    12.55 on a Face Value of Rs.5 – compared to Rs.10.3 in preceding qtr and Rs.13.36 in corresponding Qtr.

Current Market price is Rs.680 – compared to 52 week high price of Rs.877.30 and  52 week low price  of Rs.585. Given the Market conditions, it is difficult to predict the next 2Qtrs – until RBI and Govt announce some Positive measures. But, M&M is led by competent Management and has performed excellently so far. It has healthy Joint ventures, acquisitions. So, it is a Good Investment for Medium to Long term Investors.

ANNOUNCEMENTS BY M&M

17-11-2011        Mahindra and Telephonics Corporation to Form Joint Venture

17-11-2011        Mahindra & Mahindra Ltd. - Q2 Group Revenues up by 62%

14-11-2011        Mahindra & Mahindra Limited has approved the consolidation of its Shareholding in Swaraj Automotives Limited ("SAL") through a voluntary open offer under Regulation 6(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ("Takeover Code"). The Company would be making an open offer to the Shareholders of SAL for acquiring upto 6,47,382 fully paid-up Equity Shares of Rs. 10 each constituting 27% of the total voting Equity Share Capital of SAL at an offer price of Rs.90 per Equity Share for a total price consideration not exceeding Rs.5,82,64,380 in accordance with the Takeover Code. The Equity Shares of SAL are listed at the Delhi Stock Exchange Limited.

14-11-2011        standalone Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 730681 lacs for quarter ending on 30-SEP-2011 against Rs. 531126 lacs for the quarter ending on 30-SEP-2010. Net Profit / (Loss) of Rs. 73738 lacs for the quarter ending on 30-SEP-2011 against Rs. 75849 lacs for the quarter ending on 30-SEP-2010.

14-11-2011        Mahindra & Mahindra Limited has informed the Exchange regarding the press release dated November 14, 2011 titled "Q2 F2012 - M&M + MVML results"

PRESS RELEASE – SYNOPSIS

Q2 F2012 – M&M + MVML results

Mahindra Vehicle Manufacturers Limited (MVML), a 100% subsidiary of M&M Ltd,located at Chakan near Pune, is a critical segment of its business. The combined results of M&M and MVML provide a more comprehensive view of Company’s performance.

The combined Gross Revenues and Other Income for the quarter ended 30th September 2011 is Rs. 8298.8 crore as against Rs. 6199.6 crore during the corresponding period last year – a growth of 33.9%.

The Profit after tax for the current Q2 is Rs 761.5 crore as against Rs 738.0 crores in Q2 last year.

In the current quarter, M&M Ltd. suffered a net loss of Rs 32.0 crore on account of the precipitous fall in the value of the Rupee against the US dollar towards end of the quarter and the consequent revaluation of its External Commercial Borrowings repayable largely in the year 2016. Excluding the impact of this Exchange Difference, profit after tax during the quarter was Rs 783.1 crore as against Rs 738.8 crore in Q2 F2011 – a growth of 6.0%.

The Operating Margin for the current quarter excluding the above Exchange Difference is 13.3%.

Q2 F2012 – M&M Standalone results

The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 30th September 2011 is Rs. 8198.7 crore as against Rs. 6157.3 crore during the corresponding period last year – a growth of 33.2%.

 The Profit after tax for the quarter is Rs.737.4 crore as against Rs.758.5 crore in Q2 last year.

Excluding the impact of Exchange Difference as above, PAT for the current quarter is Rs.759.0 crore which is on par with the PAT of Q2 last year.

The Operating Margin after adjusting for the above Exchange difference is 12.3%. The company could maintain its profits despite the relentless increase in material costs due to a good volume performance by both Vehicles and Tractors in a difficult market and a tight control on expenses.

SALES PERFORMANCE : In the Passenger Utility Vehicle segment, the company, with sales of 47523 vehicles in the current quarter, registered a growth of 14.2% over Q2 last year and maintained its dominant position with a market share of 54.0%. While all products in the company’s UV portfolio did well, the quarter belonged to the company’s newly launched Global vehicle XUV5OO which with its enhanced technology, international features and attractive pricing literally took the markets by storm. In the Passenger MPV VAN segment, company’s Gio compact cab and Maxximo Mini Van together recorded a volume of 7,679 nos. with a market share of 12.5%. In a highly competitive LCV < 2T (mini truck) segment, the sales of company’s Maxximo Load & Gio Load grew by an impressive 48.9% in Q2 F2012. In the current quarter, the company exported 7,239 vehicles as against 3835 vehicles in Q2 last year - a growth of 88.8%. SAARC, South American & South African markets extended healthy support to company’s products.

The domestic tractor industry showed a robust growth in the current quarter with sales growing by 28.2% over Q2 last year. The company’s performance during the quarter with domestic sales of 54,585 tractors under the Mahindra &Swaraj brands and a sales volume growth of 28.5% over the Q2 last year, was even better than that of the industry. The company’s market share during the quarter was 41.2%. The company exported 3102 tractors in Q2. The engine business revenue grew by 24.9% to Rs. 208.1 Crore in Q2 F2012 against Rs.166.6 Crore for Q2 last year.

H1 F2012 – M&M + MVML Results

The Gross Revenues and other income of Mahindra & Mahindra Ltd. and MVML during the half year ended 30th September 2011 is Rs.15722.4 crore as against Rs.11889 crore in the corresponding period previous year – a growth of 32.2%. The Profit after tax for the current H1 is Rs 1379.8 crore as against Rs 1288.7 crores in H1 previous year – a growth of 7.1%. The growth in PAT excluding the impact of Exchange Difference is 8.3%.

H1 F2012 – M&M Standalone Results

The Gross Revenues and other income of Mahindra & Mahindra Ltd. during the half year ended 30th September 2011 is Rs.15493.0 crore as against Rs.11820.8 crore in the corresponding period previous year – a growth of 31.1%. The Profit after tax for the current H1 is Rs 1342.3 crore as against Rs 1320.9 crores in H1 previous year – a growth of 1.6%. Excluding the impact of Exchange Difference, the growth in PAT is 2.8%.

Outlook:

After recording an annual average rate of growth of about 8.5% per annum during the last five years, India’s economic performance will dip below trend in F2012. While agriculture, given the good rainfall received this monsoon season, is expected to do well, industrial activity is visibly moderating, with construction and mining activities at a virtual standstill in Q1 F2012. Faced with a steadily deteriorating global macro environment, volatile capital flows & exchange rates, persistently high inflation, rising interest rates and continued policy and regulatory uncertainty, business confidence has weakened considerably this year. Investment outlays, as a consequence are witnessing a significant moderation, which does not bode well for future growth. The National Manufacturing Policy outlined recently is promising and has helped boost sentiments. On balance, our economic outlook for the current year is cautious.

STAND ALONE RESULTS TABLE

M&M
30-Sep-11
30-Jun-11
% DIF
30-Sep-10
% DIF
Net Sales
730681
667320
9.49
531126
37.57
Other Operating Income
5381
6034
-10.82
12310
-56.29
Increase in SIT / WIP
-25468
-25827
-1.39
-24075
5.79
Raw Materials
470872
437302
7.68
354124
32.97
Traded Goods
88731
71889
23.43
34890
154.32
Employees Cost
43015
40338
6.64
35824
20.07
Depreciation
12571
10988
14.41
9700
29.6
Other Expenditure
71511
59918
19.35
53176
34.48
Total Expenditure
661232
594608
11.2
463639
42.62
Profit from Operations
74830
78746
-4.97
79797
-6.22
Other Income
23152
2487
830.92
19977
15.89
Interest
489
-200
-344.5
-905
-154.03
Profit  before tax
97493
81433
19.72
100679
-3.16
Tax expense
23755
20945
13.42
24830
-4.33
Net Profit
73738
60488
21.91
75849
-2.78
Face Value (In Rs
5
5
0
5
0
Paid Up Equity
29397
29367
0.1
28522
3.07
Basic EPS
12.55
10.3
21.84
13.36
-6.06
Diluted EPS
12.01
9.85
21.93
12.69
-5.36
Public Holding (%)
68.3
68.76
-0.67
69.13
-1.2

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