Mahindra & Mahindra Posts FY10 Results And Demonstrates Continued Growth In Australia

SYDNEY - June 16, 2010: Mahindra & Mahindra (M&M) recently posted its impressive results for the financial year ended March 31st 2010. The Group Consolidated results showed that the Gross Revenues and Other Income for the year ended 31st March 2010 grew by 16.6 % to Rs. 33790.1 crores (AUD 8.45 billion) from Rs. 28992.0 crores (AUD 7.2 billion) last year. The profit before exceptional items and tax for the current year is Rs. 3779.7 crores (AUD 940 million) as compared to Rs. 2330.5 crores (AUD 580 million) last year. The consolidated group profit for the year after exceptional items, prior-period adjustments and tax and after deducting minority interests is Rs. 2478.6 crores (AUD 620 million) as compared to Rs. 1405.4 crores (AUD 350 million) earned in the previous year - a growth of 76.4 %.

Claire Tynan, CEO, Mahindra Automotive Australia said, “Showing such strong results in a year that was so tough economically on a global scale is truly remarkable. We are regularly impressed by the company’s vision for growth, particularly here in Australia, as it continues to build scale year on year.”

In this period, Mahindra & Mahindra furthered its commitment to the local market. Mahindra Systech, the component arm of Mahindra & Mahindra, acquired 75.1% stake in two Australian aerospace companies -- Aerostaff Australia (AA) and Gippsland Aeronautics (GA). Mahindra Satyam, a global consulting and information technology services company continued toestablish its prominent position creating strong relationships with leading clients across key verticals. The Farm Equipment Sector of M&M became the largest tractor company in the world by volume, and the Australian arm celebrated five years in the market.

Mahindra & Mahindra’s Auto Sector commenced the year by launching the Xylo and Scorpio Refresh in India at a time when the Industry was hoping to recover from one of the worst years in memory globally. However, the year ended for the sector with an impressive 63% market share in the local UV segment, a UV volume growth of 39% and an overall volume gain of 29%. The Bolero model has continued to impress, while Scorpio is fast becoming an iconic brand in India, and Xylo won several awards. The Auto Sector also launched the Bolero Maxi Truck, the category defining compact truck - Gio, and the much awaited small LCV - MaXXimo.

With each of the products, M&M have demonstrated their maturing capabilities of customer insight and product development. The export volumes also turned the corner in the second half of the year. The focus on customer centricity continued and M&M were ranked 3rd in the JD Power Customer Satisfaction Index for 2009, showing a growth of 24% on the previous year. Sales were predominantly spread over Asia (37%), South & Central America (22%), and South Africa (13%).

However, the most significant achievement was the inauguration of the Chakan plant India, which was set up in record time. The Mahindra Chakan facility is set to create new benchmarks in automotive excellence, and is set to put Chakan on the global auto map. The facility will ultimately manufacture Mahindra’s full range of products under one roof in its 700 acre capacity, and will encapsulate several eco-friendly initiatives including the use of Solar Energy.

Ms. Tynan continues, “With these exciting developments for the company, Mahindra Automotive Australia remains firmly committed to its continued expansion in the Australian market. With increased dealer numbers, steady growth for the Mahindra Pik-Up utility vehicle supported by its loyal customer base and the introduction of new models over the next 12 months, we’re excited about the future locally.”