Mahindra Vehicle Manufacturers Ltd. (MVML), located at Chakan near Pune, was set up as a 100 per cent subsidiary of Mahindra & Mahindra Ltd. (M&M) 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 can provide a comprehensive view of the overall performance.
The gross revenues and other income of M&M and MVML for the quarter ended September 30, 2012, is Rs. 10,786.7 crores as against Rs. 8,235.8 crores during the corresponding period last year, registering a growth of 31 per cent. Net profit before tax for the quarter is Rs. 1,327.2 crores (Rs. 1,001.4 crores). After providing for tax, the same is Rs. 978.1 crores (Rs. 761.5 crores), a growth of 28.4 per cent. The operating margin of the entity for the current quarter is 13.8 per cent.
The growth in profit despite the relentless increase in material costs is due to good volume performance by the automotive sector and tight control on expenses.