ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Glowing Results

Glowing Results Hansavivek MAHINDRA AND MAHINDRA's results are so impressive that the dividend stepped up from 12.5 per cent to 15 per cent is covered 3.36 times by earnings, as against a cover of only 1,22 times for the previous year's lower payment. This performance has been achieved because of, a near 48 per cent increase in the production of vehicles (from 7.147 to 10,568 numbers) followed by about 31 per cent rise in sales (from 8,109 to 10,609 numbers). This also justifies the confidence the management had planted in the new product line with emphasis on dieselisa- tion and the market policies directed towards serving many types of customers. With sales up 12 per cent from Rs 55.71 crores to Rs 62.43 crores, gross profit has jumped by 86 per cent from Rs 2.75 crores to Rs 5.12 crores. Although both depreciation and taxation require larger provisions, net profit is more than doubled to Rs 2.61 crores (Rs 1.17 crores). These figures look all the more pleasing viewed against the background of static selling prices Since April 1975, despite increases in costs of labour and material. In spite of the considerably expanded activities of the company, the management has been able to control stocks and achieve substantial decrease in inventory levels, as reflected in the decline in inventories sales ratio from 24.19 per cent to 19.96 per cent over the year. The research and development programmes for engines and vehicles continue to show promise and should permit the introduction of new models in the near future.

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