M&M saw a see-saw trend on announcing Q3 results, first rising, and then moving downward after the market deemed the results had belied expectations.

At the current juncture, in fact, the scrip was down 0.2% at Rs 103.65, very near the day's low of Rs 103.50. Soon after the results hit the market, the scrip had gained 1% to Rs 105 from 104.50 just ahead of the results. The scrip was off the day's high of Rs 107.40. Around 200,000 Mahindra & Mahindra shares were exchanged on the counter on BSE.

M&M has been performing exceedingly well on the bourses of late as the market was expecting strong Q3 results from the company as well as following the success of its newly launched utility vehicle Scorpio.

For Q3 ended 31 December 2002, M&M has posted a 26.5% growth in net profit to Rs 30.78 crore from Rs 24.32 crore. Net profit was on the lower side of analysts' expectations that varied in a wide range of between Rs 26 crore and Rs 50 crore. The total income (net of excise) went up 8% to Rs 998.41 crore (Rs 9.98 billion). Total income was in line with analysts' expectations of between Rs 950 crore (Rs 9.5 billion) and Rs 1,013 crore (Rs 10.13 billion).

M&M has also issued its outlook for Q4. The outlook for sales in the automotive sector in Q4 of the current year is positive, it has said. The automotive division comprises mainly of utility vehicles. However, the recessionary conditions prevailing in Indian agriculture are expected to continue in Q4 as well, M&M has said. At the same time, the tractor industry is going through a process of pipeline inventory correction. This is likely to affect tractor sales of both the industry as well as the company in Q4. The company will continue to focus on cost reductions and process improvements to mitigate the impact of such an external environment, the company said.

In a recent development, M&M has bid for acquiring control over north based tractor major Punjab Tractors . Punjab State Industrial Development Corporation is divesting its stake in Punjab Tractors.

M&M recently announced its entry into the industrial engines market. In a statement, M&M said the engines will be manufactured by the company's farm equipment sector at its engine assembly plants at Kandivli (Mumbai) and Nagpur.

BSE Code: 500520