The leading manufacturer of utility vehicles posted a higher gross profit of Rs 439.99 crore as against Rs 435.74 crore in the previous accounting period and maintained a dividend of 55 per cent.

Our grip on the rural market, coupled with the wide range of products had enabled us to arrest the impact of the acute recessionary trend as compared to the rest of the industry, managing director anand mahindra said in a statement following the board meeting here today.

The year ended with the company's Tractor division increasing its market share to 27.2 per cent. Sales grew by 2.3 per cent in comparison to the industry growth of 1.8 per cent.

The automotive division, however, sold fewer vehicles than last year. Though the company'S Market share grew to 57.5 per cent from 51.73per cent, volumes dropped from 76,954 vehicles to 70,548 vehicles during 1998-99.

Automobiles peugeot, M&M's earlier collaborator for diesel engines, commenced buying engine components from the company during the year, resulting in exports of Rs 2,500 sets to france.Managing director Anand Mahindra said, "Our grip on the rural markets, coupled with the wide range of products catering to varied customer needs, have together enabled us to arrest the impact of the acute recessionary trend as compared to the rest of the industry."

Gross sales and other income increased from Rs 4,127.95 crore to Rs 4,224.99 crore, even other income dropped from Rs 116.39 crore to Rs 107.99 crore during the period. Interest cost and finance charges rose from Rs 122.88 crore to Rs 151.86 crore, while provision for depreciation increased to Rs 111.98 crore from Rs 99.29 crore in 1997-98. "The company borrowed around Rs 200 crore for its meeting capex requirements, which pushed up interest charges," said a companyofficial.