Mahindra Q3 Profits Down Despite Product Performan

Published: Wednesday, February 8, 2012, 11:53 [IST]

Mahindra and Mahindra, India's leading SUV manufacturer has reported a 9.9 per cent drop in net profits in Q3 2011-2012. The company has said the sustained increase in raw material costs had affected margins. But it added its margins were still the best in the industry. The company's net profits for Q3 stood at 662.2 crores.

Mahindra's net sales for the quarter stood at 8,327 crores marking a 37 per cent increase. Much of this increase has been attributed new launches such as the XUV 500. The3 carmaker will launch a face lifted version the Xylo MPV today. It will also launch a compact version of the Verito sedan, Reva NXR electric car and the Ssangyong Rexton

Mahindra has been boosted by the extremely positive reception received for the recently launched XUV 500. It has already received more than 25,000 bookings for the SUV in the second round of bookings and is expecting a similar response to the new Xylo too.

Mahindra is planning to increase production the XUV 500 to 5,000 units a month to reduce waiting period for the car. The company's only concern for the next quarter is the reduced number of tractor sales.

Article Published On: Wednesday, February 8, 2012, 11:53 [IST]

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