Projecting an optimistic outlook, Mahindra and Mahindra expects growth to pick up in the second half of this fiscal.
Announcing its results on Wednesday, the company said its medium to long term outlook on the Indian economy was positive.
After a rapid recovery following the global financial crisis, the country's economic performance faltered in FY12. While the agricultural and services sectors displayed resilience, the unsettled global outlook and weak domestic economic environment, took a heavy toll on industrial activity and growth.
On performance, M&M said the growth in the profits of the company, despite the relentless increase in material costs, was due to good sales of both vehicles and tractors, besides tight control on expenses.
VEHICLE SALES
In the passenger utility vehicle segment, the company sold 2,02,217 vehicles, a rise of 19.5 per cent over the previous year. In the cars segment, it sold 17,839 Verito cars. Exports totalled 29,176 vehicles. Tractor sales were up 10. 4 per cent at 2,36,666 against 2,14,325 sold last year. Exports totalled 13,722 tractors.
The Board of Directors recommended a dividend of Rs 12.50 (250 per cent) a share.
M&M said that on the day of the AGM scheduled for August, Mr Keshub Mahindra will retire as Chairman and assume the role of Chairman Emeritus, and Mr Anand Mahindra will become the Chairman and Managing Director.
The consolidated gross revenues and other income for FY12 was up 60 per cent to Rs 63357.8 crore (Rs 39864.4 crore) and consolidated profit Rs 3126.7 crore (Rs 3079.7 crore).
The growth in group revenues during the year was due to the inclusion of the turnover of Ssangyong Motor Company during the year. The group at the end of the year comprised 114 subsidiaries, six joint ventures and 11 associates, the company said.
On Wednesday, the company scrip closed marginally up at Rs 657.20 on the BSE.