Mahindra & Mahindra fell 3.76% to Rs 583.30 after the company's total auto sales fell 11% to 51,896 units in October 2019 as against 58,416 units in October 2018.
Total domestic sales tumbled 11% to 49,193 units while total exports fell 12% to 2,703 units in October 2019 over October 2018. The announcement was made during market hours today, 1 November 2019.
Sequentially, total auto sales jumped 19.73% to 51,896 units in October 2019 as against 43,343 units in September 2019.
Commenting on the performance, Veejay Ram Nakra, the chief of sales & marketing of automotive division of M&M, has said that, "The festive month of October 2019 was excellent for Mahindra, with retail volume exceeding wholesale by approximately 40%. This robust retail performance was contributed by both passenger & commercial vehicles. Further, our billing numbers are in line with what we had planned for the month, since the objective was to significantly correct our channel inventory. We hope to see the positive consumer sentiment continue going forward."
The company's total tractor sales fell 4% to 45,433 units in October 2019 over 47,376 units in October 2018. Domestic tractor sales were down by 4% to 44,646 units in October 2019 compared with 46,312 units in October 2018. Tractor exports fell 26% to 787 units in October 2019 over October 2018.
Sequentially, tractor sales surged 22.75% to 45,433 units in October 2019 as against 37,011 units in September 2019.
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Commenting on the performance, Rajesh Jejurikar, the president of farm equipment sector of M&M, has stated that, We have sold 44,646 tractors in the domestic market during October 2019. The festive season has seen improvement in demand uptick. The retail momentum has been good in October with a healthy double digit growth compared to October last year. Higher reservoir levels, adequate soil moisture condition and an improved MSP of Rabi crop, augur well for tractor demand in the next few months. In the exports market, we have sold 787 tractors.
Shares of Mahindra & Mahindra declined 5.41% in two trading sessions to its current market price of Rs 583.30 from a recent closing high of Rs 616.70 on 30 October 2019.
Meanwhile, the S&P BSE Sensex was down 29 points or 0.07% to 40,100.44.
On the BSE, 1.44 lakh shares were traded in the counter so far compared with average daily volumes of 1.03 lakh shares in the past two weeks. The stock hit an intraday high of Rs 614 and an intraday low of Rs 582.30 so far during the day.
The stock hit a 52-week high of Rs 814 on 21 December 2018. The stock hit a 52-week low of Rs 502.85 on 14 August 2019.
On a consolidated basis, Mahindra & Mahindra's net profit tumbled 51% to Rs 809.30 crore on 0.1% decline in net sales to Rs 26,041.02 crore in Q1 June 2019 over Q1 June 2018.
Mahindra & Mahindra is engaged in the manufacture of passenger cars, commercial vehicles and tractors.
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