Mahindra & Mahindra =QTRLY RESULTS = FOT Q3 FY 2012 - 3rd QTR/E DEC, 2011 = NET SALES UP 37% YoY; NPT DOWN 10% YoY

Mahindra & Mahindra Limited

NSE Symbol        M&M

MAHINDRA & MAHINDRA has declared its results for the3rd Qtr ending Dec, 2011.

Net Sales stands at Rs.8327.20 Cr; up by  13.96% from Q2 FY 12; Up by 24.79% from Q1 FY 12.and up by     37.09% from Q3 FY 11.

Raw Materials Consumption      stands at Rs.4579.22 Cr; down by -2.75% from Q2 FY 12; Up by  4.72% from Q1 FY 12.and up by 21.23% from Q3 FY 11.

Traded Goods stands at Rs.1555.10 Cr; up by        75.26% from Q2 FY 12; Up by 116.32% from Q1 FY 12.and up by 264.99% from Q3 FY 11.

Employees Cost  stands at Rs.449.68 Cr; up by 4.54% from Q2 FY 12; Up by        11.48% from Q1 FY 12.and up by  29.39% from Q3 FY 11.

Other Expenditure  stands at Rs.680.92 Cr; down by        -4.78% from Q2 FY 12; Up by 13.64% from Q1 FY 12.and up by      10.9% from Q3 FY 11.

Total Expenditure stands at Rs.7506.79 Cr; up by 13.53% from Q2 FY 12; Up by        26.25% from Q1 FY 12.and up by  41.65% from Q3 FY 11.

Profit from Operations stands at Rs.880.02 Cr; up by 17.6% from Q2 FY 12; Up by 11.75% from Q1 FY 12.and up by  7.11% from Q3 FY 11. Up to OPT level, the financial performance is quite satisfactory.

Profit  before tax stands at Rs.914.05 Cr; down  by -6.24% from Q2 FY 12; Up by 12.25% from Q1 FY 12.and down by      -7.07% from Q3 FY 11. (i) This (-7.07%)  is because of a Negative exceptional expense of Rs.117.48 cr in Q3 FY 12 which had increase PBT in that qtr. (ii) Other income at Rs. 231.52 cr in Q2 FY 12 was much higher than Q3 FY 12(Rs.40.80 cr).Because of these 2 aspects Q3 FY 12 (Current Qtr) PBT looks lower than Q2 FY 12 and Q3 FY 11.

Tax expense stands at Rs.251.90 Cr; up by 6.04% from Q2 FY 12; Up by 20.27% from Q1 FY 12.and up by 1.18% from Q3 FY 11.

Net Profit  stands at Rs.662.15 Cr; down by -10.2% from Q2 FY 12; Up by 9.47% from Q1 FY 12.and down by -9.87% from Q3 FY 11.

Face Value is Rs.5 and ; Paid Up Equity is Rs.294.22 Cr

Basic EPS stands at Rs.11.26 for Q3 FY 12; Rs.12.55 for Q2 FY 12; Rs.10.3 from Q1 FY 12; and Rs.12.59 for Q3 FY 11.

Annual EPS is likely to be around Rs.45.37

The current Market Price is Rs.690;  While the 52 week high price is Rs.877.30 and the 52 week low price is Rs.585.

The PE ratio is 15.21

OTHER DETAILS

Mahindra Vehicle Manufacturers Limited (MVML), located at Chakan near Pune, was set up as a 100% subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company. Hence it is a critical part of its business and only the combined results of the company and MVML will provide a comprehensive view of company’s performance.

Q3 F 2012 – M&M + MVML RESULTS

The combined Gross Revenues and Other Income of M&M and MVML for the quarter ended 31st December 2011 is Rs. 9011.2 CR as against Rs. 6728.6 CR during the corresponding period last year – a growth of 33.9%. In Q3 last year, M&M Ltd. had an exceptional profit of Rs 117.5 CRs arising from the sale of its holdings in Owens Corning India Limited. Excluding this exceptional item of last year, profit after tax during the current quarter of Rs 705.9 CR compared very favourably with Rs 608.5 CR in Q3 F2011 – a growth of 16.0%. The Operating Margin for the combined entity in the current quarter is 13.8%.

Q3 F2012 – M&M  S/A RESULTS

The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 31st December 2011 is Rs. 8978.7 CR as against Rs. 6684.0 CR during the corresponding period last year – a growth of 34.3%. Excluding the impact of the sale of Owens Corning Shares last year, PAT for the current quarter is Rs.662.2 CR against a PAT of Rs 617.2 CR in Q3 last year - a growth of 7.3%. The Operating Margin during the current quarter is 12.2%. The growth in the profits of the company despite the relentless increase in material costs is due to a good volume performance by both Vehicles and Tractors in a difficult market and tight control on expenses. Once again it is stressed that the only meaningful figures for PAT and OPM are those of the combined entity M&M + MVML provided above.

In the Passenger Utility Vehicle segment, the company, with sales of 51702 vehicles in the current quarter, registered a growth of 22.9% over Q3 last year as compared to an industry growth of 18.4% and thus maintained its dominant position with a market share of 57.8%. All products in the company’s UV portfolio did well in the quarter. In the Passenger MPV VAN segment, company’s Gio compact cab and Maxximo Mini Van together recorded a volume of 6629 nos. with a market share of 13.4%. In a highly competitive LCV < 2T (mini truck) segment, the sales of company’s Maxximo Load & Gio Load grew by 12.1% and in the LCV > 2T & 3.5T by 35.0%. In the current quarter, the company exported 7587 vehicles as against 5020 vehicles in Q3 last year - a growth of 51%. SAARC, South American & South African markets continued to extend healthy support to company’s products.

The domestic tractor industry showed a moderate growth in the current quarter with sales growing by 12.7% over Q3 last year. The company’s performance during the quarter with domestic sales of 62342 tractors under the Mahindra & Swaraj brands and a sales growth of 12.0% over the Q3 last year matched that of the industry. The company’s market share during the quarter was 42.9%. The company exported 3840 tractors in Q3. The engine business revenue grew by 14.1% to Rs. 200.1 CR in Q3 F2012 against Rs. 175.4 CR for Q3 last year.

YTD F2012 – M&M + MVML Results

The Gross Revenues and other income of Mahindra & Mahindra Ltd. and MVML during the period ended 31st December 2011 is Rs.24609.4 CR as against Rs.18587.7 CR in the corresponding period previous year – a growth of 32.4%.  The Profit after tax for Apr-Dec 2011 is Rs 2085.8 CR as against Rs 1897.2 CRs (excluding exceptional item) in the corresponding period previous year – a growth of 9.9%. 

YTD F2012 – M&M Standalone Results

The Gross Revenues and other income of Mahindra & Mahindra Ltd. during the year to date period ended 31st December 2011 is Rs.24471.7 CR as against Rs.18504.7 CR in the corresponding period previous year – a growth of 32.2%.  The Profit after tax for the current YTD period is Rs 2004.4 CR as against Rs 1938.1 CRs (excluding exceptional item) in the same period previous year - a growth of 3.4%.

RESULTS  TABLE

M&M	31-Dec-11	30-Sep-11	%DIF1	30-Jun-11	%DIF2	31-Dec-10	%DIF3
Net Sales	832720	730681	13.96	667320	24.79	607446	37.09
Other Oprtng Income	5961	5381	10.78	6034	-1.21	4663	27.84
Increase in SIT / WIP	10105	-25468	-139.7	-25827	-139.1	3237	212.17
Raw Materials	457922	470872	-2.75	437302	4.72	377735	21.23
Traded Goods	155510	88731	75.26	71889	116.32	42607	264.99
Employees Cost	44968	43015	4.54	40338	11.48	34753	29.39
Depreciation	14082	12571	12.02	10988	28.16	10218	37.82
Other Expenditure	68092	71511	-4.78	59918	13.64	61401	10.9
Total Expenditure	750679	661232	13.53	594608	26.25	529951	41.65
Profit from Operations	88002	74830	17.6	78746	11.75	82158	7.11
Other Income	4080	23152	-82.38	2487	64.05	4187	-2.56
Interest	677	489	38.45	-200	-438.5	-271	-349.82
Exceptional Items	-	-		-		-11748
Profit  before tax	91405	97493	-6.24	81433	12.25	98364	-7.07
Tax expense	25190	23755	6.04	20945	20.27	24896	1.18
Net Profit	66215	73738	-10.2	60488	9.47	73468	-9.87
Face Value (In Rs	5	0		5	0	5	0
Paid Up Equity	29422	29397	0.09	29367	0.19	29356	0.22
Basic EPS	11.26	12.55	-10.28	10.3	9.32	12.59	-10.56
Diluted EPS	10.78	12.01	-10.24	9.85	9.44	12.28	-12.21
Public holding (%)	68.9	68.3	0.88	68.76	0.2	71.65	-3.84

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