M&M grows by 23% in UV segment

Mahindra & Mahindra has announced its financial results for the quarter ending 31st March 2010. It has showed a good jump in the gross revenues and other income of Mahindra & Mahindra Ltd. The figure stood at Rs 5806.7crore as against Rs 4139.6crore during the corresponding period last year, a growth of 40.3%. The profit after tax showed a growth of 36.4% as against last year.

The company continued to show robust volume growth in Q4 of FY10 for its automotive business with its UV sales in the quarter growing to 59,526 units as compared to 48,088 units in Q4 last year, which is a growth of 23.8 percent. The company had a market share of 60.8 percent in the UV industry in the quarter. 

The volume and market share growth of the company was driven by the sales of Xylo, the refreshed Scorpio and their best seller UV, the Bolero. The company also launched a four wheel cargo vehicle called Maxximo which has world’s first C2 cRDE engine in February 2010.

The domestic tractor market too saw a growth of 54.6 percent, selling 111,326 tractors against 73,321 units in the same quarter last year. The company in the current fiscal became the single largest tractor company in the world by number with sales of 1,75,196 tractors against 1,20,202 tractors sold last year, a growth of 45.8 percent.

Subsequently, Mahindra & Mahindra has also announced that it has submitted a letter of intent to make a bid for Ssangyong Motors, a Korean sport utility vehicle maker.

Pawan Goenka, president of Mahindra's automative sector said, "We have submitted an expression of interest for Ssangyong. If we are one of the companies shortlisted, then we will undertake a due diligence."

"We have to look at the economic viability of the company and how it fits into our strategy before we make a bid," Goenka added.