Mahindra signs preferred financier agreement with Abhyudaya Co-operative Bank
Ajay Budki, Sr. GM – Sales, West Zone, Automotive Division, Mahindra & Mahindra Ltd. and V.S. Morye, Chairman, Abhyudaya Co-operative Bank signed the MoU in the company of P. S. Salian, GM Credit department, of the bank, and Nitin Mehta, D.G.M – Sales, Mumbai Area office, Automotive Division, Mahindra & Mahindra Ltd.
M&M Ltd. and Abhyudaya Co-operative Bank will leverage on the inherent strengths of each other’s vast network that spans 29 dealer outlets and 90 branches across Maharashtra and Abhyudaya Co-operative Bank has 111 Branches.
V.S. Morye, Managing Director, Abhyudaya Co-operative Bank says the bank is expanding its operations in commercial and passenger vehicle financing through offerings to its customers. This arrangement with Mahindra & Mahindra will be one such special initiative, and bank customers will benefit from this tie-up as they have privileged access to specialized M&M services.
A customised comprehensive product catering to the niche customer base needs will be promotes proactively offering competitive interest rates, and is expected to increase the portfolio considerably in this segment said P.S. Salian.
Unaudited Mahindra and Mahindra financial results for the quarter ended 30th September 2014 shows Gross Revenues and Other Income of Mahindra & Mahindra Limited and MVML (Entity) at Rs. 10400.9 crore over Rs. 9931.2 crore in Q2 of the previous year, equating to 4.7% growth. Net Profit before tax for the current quarter is Rs. 1240.1 crore as against Rs.1197.1 crore in Q2 of the previous year. After providing for tax the same is Rs. 974.1 crore as against Rs. 957.4 crore in Q2 of the previous year – a growth of 1.7%.
Indian automotive industry while showing some initial signs of recovery is still nowhere near full recovery. Below average and delayed monsoon has contributed to crop damage apart from cyclones, causing domestic tractor industry to remain flat in Q2 FY15 as compared to Q2 FY14.
New gen Scorpio has been introduced in the quarter, apart from Arjun Novo. Mahindra sold 47906 utility vehicles and continued its leadership position with 33.25 market share, having exported 7053 vehicles in the current quarter. Domestic tractor industry sales stood at 141560 tractors in Q2 FY15. 57701 tractors were sold in the domestic market in the current quarter remaining flat when compared to 57549 tractors sold in Q2 previous year, maintaining its leadership position with 40.6% market share. 3695 tractors were exported in the current quarter.
Indian economic growth has been weak in recent months with YoY IIP growth decelerating from 3.9% in Q1 of this fiscal to 0.4% in July-August. Headline CPI Inflation decelerated to 6.5% YoY in September. WPI inflation in Sept hit a 5 year low of 2.38% YoY. India’s CAD has dropped to 1.7% of GDP in the Q1 of current fiscal from 4.8% in Q1 F14. Commodity and crude oil price outlook remains calm, and and non-oil exports have seen acceleration YTD,India’s BOP position is likely to remain comfortable through the year. Weak South West monsoon season impacts Kharif harvest negatively, live storage at water reservoirs is currently at 78%, above the 10 year average of 76%, which is beneficial for winter /rabi agricultural season.