Mumbai: Despite higher commodity prices, leading Auto Company Mahindra & Mahindra has registered an increase of 6.36 per cent in its net profit for the fourth quarter ended March 31 at Rs 606.54 crore as against Rs 570.26 crore due to strong volume growth.

“Despite soaring commodity prices, the company posted stellar profit in the fourth quarter ended March 31, due to better volumes. It was a year of growth for us. We closed the year (FY 11) with a strong fashion,” Mahindra Group Vice-Chairman and Managing Director, Anand Mahindra told reporters here on Monday.

“There was pressure on operating margins due to high input costs, but we maintained a good balance. Commodity prices are a matter of concern,” he said.

The company’s total income in the fourth quarter (FY 11) stood at Rs 6,825.57 crore as against Rs 5,322.75 crore year ago.

For the year ended March 31, 2011, net profit stood at Rs 2,662.10 crore as compared to Rs 2,087.75 crore in the previous fiscal. Its total income for FY 11 stood at Rs 23,803.24 crore as against to Rs 18,801.46 crore in the previous fiscal.

The auto major sold 358,021 vehicles in the domestic market during FY 11 and sales of SUVs such as Scorpio, Xylo and Bolero increased 12 per cent, to 196,205 units.

“We see pressure on operating margins but did not pass on higher raw material costs to our customers,” Mahindra Group Chief Financial Officer Bharat Doshi said.

The increasing commodity prices has forced auto makers to continuously revise prices of vehicles to protect margins for last many months.

(Agencies)