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M&M gains after reporting strong tractor sales in June 2013

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Capital Market
Last Updated : Jul 01 2013 | 4:30 PM IST

The company announced the tractor sales numbers during trading hours today, 1 July 2013.

Meanwhile, the S&P BSE Sensex was up 150.56 points or 0.78% at 19,546.37

On BSE, 1.04 lakh shares were traded in the counter as against average daily volume of 1.02 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 2% at the day's high of Rs 985.95 so far during the day. The stock lost as much as 1.56% at the day's low of Rs 951.40 so far during the day. The stock had hit a 52-week low of Rs 675.10 on 25 July 2012. The stock had hit a record high of Rs 1,026.45 on 20 May 2013.

The stock had outperformed the market over the past one month till 28 June 2013, sliding 0.66% compared with the Sensex's 3.79% fall. The scrip had also outperformed the market in past one quarter, jumping 12.24% as against Sensex's 2.97% rise.

The large-cap utility vehicles and tractors maker has equity capital of Rs 307.94 crore. Face value per share is Rs 5.

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Mahindra & Mahindra's (M&M) total tractor sales rose 17% to 27,749 units in June 2013 over June 2012. Exports declined 19.33% to 1,026 units in June 2013 over June 2012.

Commenting on the company's monthly tractor sales performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, M&M said, "We are extremely happy with our performance in the first quarter of FY 2014. The domestic growth of 19% achieved during June 2013 is indicative of the positive momentum this year. The improved Kharif crop output prospect is expected to spur the rural economy further".

M&M during trading hours today, 1 July 2013, also said that its total automobile sales declined 7.81% at 38,092 units in June 2013 over June 2012. The company's domestic sales declined 7.04% at 36,207 units in June 2013 over June 2012. Sales of passenger vehicles segment (which includes the UVs and Verito) declined 12.93% at 17,232 units in June 2013 over June 2012. The sales of four-wheeler commercial segment which includes the passenger and load vehicles rose 5% at 13,761 units while the three-wheeler segment sales declined 11.02% at 4,303 units in June 2013 over June 2012. Exports declined 20.49% at 1,885 units in June 2013 over June 2012.

Speaking on the monthly sales performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, "We have witnessed a de-growth in the month of June 2013 amidst an overall decline in the auto industry. The depreciating rupee resulting in spiraling fuel costs coupled with high interest rates and the additional excise duty on SUVs has further dampened the industry without any substantial revenue to Government. Going forward, we do hope that some immediate short term measures are announced and implemented by the Government to bring back buoyancy in demand which is the need of the hour".

M&M's net profit rose 1.7% to Rs 889.19 crore on 12% growth in net sales to Rs 10353.38 crore in Q4 March 2013 over Q4 March 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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First Published: Jul 01 2013 | 2:47 PM IST

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