Mahindra & Mahindra declares below-forecast Q4 net profit, but maintains double digit growth

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Mahindra said its net profit (stand alone) fell to Rs.221 crore in the fiscal fourth quarter ending March 31, 2008 from Rs.236 crore reported a year earlier, a year-on-year (YoY) decline of 6.3 percent and below market forecast of Rs.253 crore.

Net sales (stand alone), however, rose to Rs.3148 crore in Q4 up from Rs.2723 crore during the corresponding period the previous year (YoY rise of 15.6 percent).

Operating profit margin, a key gauge of profitability, fell to 10.9 percent in the March quarter from 11.5 percent during the same quarter a year earlier, the company said.

For the full fiscal year ending March 31, 2008 (FY08), the net profit for the $6.7 billion Mahindra Group (or consolidated net profit) stood at Rs.1571 crore compared to Rs.1497 crore posted a year earlier (a YoY growth of 4.9 percent).

During the same period, consolidated net sales rose to Rs.23,774 crore from Rs.17,589 crore (YoY rise of 35.16 percent).

On a standalone basis, FY08 sales increased from Rs.10,026 crore to Rs.11,503 crore (a YoY gain of 14.7 percent), while net profit stood at Rs.1103 crore as against Rs.1068 crore posted a year earlier (YoY rise of 3.27 percent).

Earnings per share (EPS) for the year ended March 31, 2008, stood at Rs.46.24 as against 45.15 a year earlier, a YoY rise of 2.4 percent.

Mahindra & Mahindra's Board of Directors has recommended a dividend of 115 percent at the rate of Rs.11.5 on shares of face value of Rs.10 for 2007-08.

During the year, the company's domestic utility vehicles (UV) sales volumes grew 16.4 percent as against the industry average of 5.1 percent. At the end of FY08, the company has increased its market share in the UV segment to 51.5 percent as against the previous year's market share of 46.6 percent.

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