M&M Plans 5,000cr Capex by FY16

Thursday, 31 May 2012, 12:09 Hrs
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Bangalore: Country's largest utility vehicle maker Mahindra & Mahindra (M&M) said it will launch six new models this fiscal and has planned a capital expenditure of 5,000 crore for the next three years.

"We have a capital allocation of Rs 5,000 crore for the next three fiscals and plan to launch six new models this fiscal," M&M president (automotive business) Pawan Goenka told reporters here during a post-earnings conference call. However, Goenka did not offer any details on the new models or launch dates.

He also announced an investment of another Rs 2,500 crore in group companies during the next three fiscals.

On the tractor front, however, the company, which is the largest manufacturer of the farm equipment in the country,sounded cautious saying its expects sales growth to halve this fiscal from 10-12% forecast earlier to 5-6%.

M&M, the flagship of the USD 14.4-billion Mahindra Group,yesterday reported a more-than-expected 44% jump in net profit for the March quarter at Rs 874.5 crore on strong volume growth.Net sales rose to Rs 9,241.28 crore for the quarter as against Rs 6,633.84 crore a year ago period.

Consolidated net for the full fiscal, 2011-12, rose to Rs 3,126.66 crore, while sales jumped to Rs 58,241.40 crore. On the much-delayed new plant in the South, Goenka said, the company is in talks with some states but so far it has not finalised the location.

Goenka also said its much-talked about car XUV500, launched on an international platform, will be rolled out in Australia, Chile and Western Europe as early as next month. Already this highly successful car is being sold in South Africa and Brazil and is selling 150 units a month in South Africa alone, Goenka added.

On the call for deregulating diesel price, M&M is a pure play diesel player, Goenka said he is all for this but expressed opposition to the call for a special Rs 80,000 cess on diesel vehicles.
Source: PTI
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