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M&M gains after strong tractor sales in August

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Capital Market
Last Updated : Sep 01 2020 | 1:50 PM IST

Mahindra & Mahindra (M&M) rose 1.53% to Rs 615.75 after the company said its total tractor sales jumped 65% to 24,458 units in August 2020 over August 2019.

Sequentially, the tractor sales declined 3.7% in August 2020 compared with 25,402 units in July 2020.

Domestic sales in August 2020 were at 23,503 units, as against 13,871 units during August 2019, a spurt of 69%. Export for August 2020 stood at 955 units, marginally higher than 946 units exported in the same month last year.

Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector said, "The Tractor industry growth continues to remain strong in August. This is primarily on account of continued positive sentiment, due to increase in Kharif sowing area, thereby indicating a bumper harvest, bountiful monsoon, good rural cash flows and base effect. We expect rural sentiments to remain positive and translate into robust tractor demand as we move into the festive period."

Meanwhile, M&M also announced its auto sales performance for the month of August 2020. The company's total automobile sales declined 16% to 30,426 units in August 2020 from 36,085 units in August 2019.

M&M's total auto sales jumped 18.5% in August 2020 from 25,678 units sold in July 2020.

In the passenger vehicles segment, M&M sold 13,651 vehicles in August 2020, compared to 13,507 vehicles in August 2019, registering a growth of 1%. In the commercial vehicles segment, the company sold 15,299 vehicles in August 2020, as against 14,684 vehicles in August 2019, a growth of 4%. Exports for the month of August 2020 were at 1,169 vehicles, 54% lower than 2,521 units sold in August 2019.

Commenting on the performance, Veejay Nakra, Chief Executive Officer, Automotive Division, M&M said, At Mahindra, we continue to see good recovery in demand both for SUVs and Pick-ups in the Small Commercial Vehicles segment. For the month of August, we have registered growth in both SUVs and Pick-ups. We have been able to meet the uplift in demand by managing the supply chain challenges and going forward will continue to keep our focus on it.

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M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

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First Published: Sep 01 2020 | 1:16 PM IST

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