M&M Q3 bottom line in line with expectations; helped by one time income

Auto major Mahindra & Mahindra has reported a net profit of Rs233.46 crore for the third quarter ended 31 December 2005 on a stand alone basis as compared to a profit of Rs133.19 crore for the prior year quarter. Total revenues for the quarter increased to Rs2,247.46 crore from Rs1,794.52 crore during the same quarter of previous year.

Profits for the quarter include a one time income of Rs48.4 crore, Rs42 crore net of tax, received for transfer of the company''s LCV division to its joint venture with International Truck and Engine Corp of US. The company received fully paid up shares at par of Mahindra International, its JV with International Truck, as consideration for the transfer.

During the quarter, the company also received an amount of Rs20.51 crore as octroi refund from the government of Maharashtra

The company had reported a net profit of Rs157.21 crore for the second quarter ended 30 September 2005 on revenues of Rs1,944.25 crore. Cumulative profits for the first three quarters of the current financial year reported by M&M stands at Rs535.93 crore or Rs23.09 per share of face value Rs10 each.

M&M is trading at Rs553.3 (up 2.88 per cent) at 02:10 PM on the NSE today.