What else would motivate Mahindra than the unexpected profit run during the last quarter- 40.30%. This prompted M&M to be more reasonable and allocated Rs8600 crore for its five year project. The company’s President said a sum of Rs5600 crore from this will be for Chakan plant and for the capex project the company has got Rs2500 crore as surplus fund. The Chakan plant will get expansions on phases, said the company’s ED. This follows the company’s earlier announcement that Rs4500 crore would be allocated for the Chakan plant. This followed the construction of a new plant in Chakan for producing all products of
the company. The 700-acre plant is capable of delivering 3 lakh units per year which include Maximmo and Navistar trucks and SUVs for export to the US.
The net profit has yielded Rs562.39 crore during the Q1 of 2010 against Rs400.85 for the corresponding period of 2009. This comes from the net income of the period Rs5160.10 crore against Rs4242.59 crore with an increase of 21.63%. however, the company has a debt of Rs3000 crore including foreign funding. The profit figure could be arrived, according to the company’s President for finance, by additional source of cost control. The overall performance of the company in Q1 of 2010 stood at the sale of 53948 units against 48720 units which showed a growth of 10.73%.He clarified that if there would be any fall in the future it may be the rising cost of the materials.