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M&M gains on hike in capacity of best selling brands

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Capital Market Mumbai
Last Updated : Apr 22 2013 | 2:44 PM IST

Meanwhile, the BSE Sensex was up 26.29 points, or 0.13%, to 19,932.70

On BSE, 2,114 shares were traded in the counter as against an average daily volume of 1.14 lakh shares in the past one quarter.

The stock hit a high of Rs 945.05 and a low of Rs 936 so far during the day. The stock hit a record high of Rs 974.80 on 10 January 2013. The stock had hit a 52-week low of Rs 621.75 on 18 May 2012.

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The stock had underperformed the market over the past one month till 14 January 2013, falling 1.54% compared with the Sensex's 3.05% rise. The scrip had, however, outperformed the market in past one quarter, rising 9.46% as against Sensex's 6.59% rise.

The large-cap company has equity capital of Rs 306.99 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) after market hours on Monday, 14 January 2013, announced that it has hiked the capacities of its three best selling brands viz. the Quanto, XUV 500 and Rexton with immediate effect. This has been necessitated due to the overwhelming demand for the Quanto, XUV500 and Rexton across the country, M&M said. With the increase in capacity for these three products, M&M hopes to bring down the waiting period for these popular products and thereby facilitate its customers in getting early deliveries of their products, the company said. In addition, the bookings for these brands have been opened across more centres in India, M&M said.

Quanto has garnered bookings of more than 12,000 units within the first two months of its launch while deliveries for the XUV500 areas per schedule, M&M said. The company's premium SUV, the SsangYong Rexton which has over 1,500 bookings across 9 cities is now poised to be launched in additional cities starting this month, M&M said. The capacity for the Quanto has been raised to 3,500 units, XUV500 to 4,500 units and the Rexton to 500 units per month, respectively so as to effectively deliver the vehicles in the shortest possible time to customers, M&M said.

Speaking on the capacity expansion, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said: "While we have been overwhelmed at the response from our customers to all the three products which are at different price points, we thought it best to expand capacities so that prospective customers are not inconvenienced with long waiting periods. Being a customer centric company, we have always wanted our products to be conveniently available to our customers with a minimum waiting period. In addition, with their launch across more centres in India, we are sure that that our products will continue to offer a unique value proposition for buyers".

M&M's auto sales rose 6% to 45,297 units in December 2012 over in December 2011. The announcement was made during trading hours on 1 January 2013.

The combined net profit of M&M and its 100% subsidiary -- Mahindra Vehicle Manufacturers (MVML) -- jumped 28.4% to Rs 978.10 crore on 31% growth in gross revenue plus other income to Rs 10786.70 crore in Q2 September 2012 over Q2 September 2011. MVML, located at Chakan near Pune in Maharashtra, has been set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offering of M&M.

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. Mahindra has a presence in the automotive industry, agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheelers.

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First Published: Jan 15 2013 | 11:32 PM IST

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