Mahindra & Mahindra lost 1.78% to Rs 767.10 at 9:17 IST on BSE after the company said its total auto sales declined 17% to 37,897 units in August 2013 over August 2012.
The company announced the auto sales on Sunday, 1 September 2013.
Meanwhile, the S&P BSE Sensex was up 146.47 points or 0.79% at 18,766.19.
On BSE, 1,996 shares were traded in the counter as against average daily volume of 1.62 lakh shares in the past one quarter.
The stock hit a high of Rs 774.95 and a low of Rs 764.60 so far during the day. The stock had hit a 52-week low of Rs 741.20 on 5 September 2012. The stock hit a 52-week high of Rs 1,026.45 on 20 May 2013.
The stock had underperformed the market over the past one month till 30 August 2013, declining 12.93% compared with the Sensex's 3.77% fall. The scrip had also underperformed the market in past one quarter, sliding 22.26% as against Sensex's 7.89% fall.
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The large-cap company has equity capital of Rs 307.94 crore. Face value per share is Rs 5.
Mahindra & Mahindra's (M&M) sales of Passenger Vehicles segment (which includes the UVs and Verito) declined 28% to 15,821 units in August 2013 over August 2012. The company's domestic sales declined 18% to 35,159 units in August 2013 over August 2012. The sale of four-wheeler commercial segment which includes passenger and load vehicles fell 4% to 13,718 units while that of three-wheelers declined 14% to 5,149 units in August 2013 over August 2012. Exports declined 9% to 2,738 units in August 2013 over August 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said, "The auto industry which is currently going through one of its most challenging phases, is in desperate need of some short-term fiscal stimulus. The weakening rupee, resulting in increased inflation, is impacting cost of operations. Immediate action by the government is needed so as not to lose out on the upcoming festive season wherein sales could look up and bring some cheer for the auto industry and add additional revenue to the government."
M&M's net profit rose 29.3% to Rs 937.91 crore on 7.1% growth in net sales to Rs 9906.23 crore in Q1 June 2013 over Q1 June 2012.
The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries.
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