Mahindra & Mahindra (M&M) Q4 03/04 earnings summary

Executive summary

• FY04 delivered record annual profits; profit before depreciation, interest, provisions, exceptional items and tax rose 59% to Rs 628.92 crore, while profit after tax increased 139% to Rs 348.54 crore.

• Recognition included the Deming Prize for the tractor division, the TPM Excellence Award for the Kandivli plant and a DSIR award for in-house R&D.

Financial highlights

• Standalone net sales/income from operations reached Rs 4,959.11 crore, up 32.88% YoY; net income including other income was Rs 5,057.44 crore.

• Profit before tax rose to Rs 438.19 crore from Rs 197.03 crore; net profit was Rs 348.54 crore versus Rs 145.53 crore.

• Consolidated turnover grew 29% to Rs 8,020.69 crore; profit before minority interests rose 109% to Rs 451.12 crore, and profit after minority interests was Rs 425.61 crore.

• Standalone diluted EPS was Rs 30.04 versus Rs 12.55; consolidated EPS was Rs 36.69 versus Rs 12.22.

Outlook and guidance

• Short- to medium-term demand was expected to remain strong; FY05 automotive growth could moderate after high growth in FY03 and FY04.

• Tractor-industry recovery depended on a normal FY05 monsoon and continued credit availability; new models were planned for launch in FY05.

• April 1–May 30, 2004 production rose YoY to 20,170 vehicles and 9,817 tractors; operations were described as promising, conditional on continued economic growth.