Mahindra appoints Anand Mahindra as executive chairman, Q2 profit up 27%

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New Delhi: Mahindra and Mahindra Ltd (M&M) on Friday said it has appointed Anand Mahindra as executive chairman for a period of 5-year and Pawan Goenka as managing director for a period of 4-years. The firm also approved the appointment of T. N. Manoharan as an additional director of the company

Separately, the company said its net standalone profit rose 27% at Rs1,163.27 crore for the second quarter ended 30 September 2016. The company had posted standalone net profit of Rs915.38 crore in the same quarter last fiscal, M&M said in a BSE filing.

The firm’s total standalone revenue from operations stood at Rs11,363.63 crore during the period under review as against Rs9,834.41 crore in the year-ago quarter, up 15.56%. Unit volume sales during the quarter stood at 1,14,795, up 11.6%.

Utility vehicles sales were at 52,287 units, up 15.6% from the year-ago period. Domestic tractor sales during the second quarter were at 57,863 units, up 36.9% from the same period last fiscal, the company said. M&M said its total vehicle exports were higher by 13.3 at 15,181 units during the second quarter.

On the outlook, the company said, abundant and well spread monsoon will help revive farm income and push up private consumption. “Prices of key agricultural inputs have stabilised which signals that farmer balance sheets are on the mend now and this will help revive the overall rural economy,” it said.

The company said, the 7th Pay Commission and OROP have put money in the pockets of government employees and pensioners which will further help demand.

“The lagged effects of the interest rates cuts by RBI along with increased transmission of lower interest rates will also be supportive of consumption. All of these bode well for broad-based consumption-led growth in coming quarters,” M&M said.

Shares of Mahindra & Mahindra Ltd were trading at Rs1,287 apiece, down 2.60% from the previous close on BSE