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M&M recovers on good tractor sales in May 2013

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Capital Market
Last Updated : Jun 03 2013 | 4:02 PM IST

The announcement was made during trading hours today, 3 June 2013.

Meanwhile, the S&P BSE Sensex was down 144.62 points or 0.73% at 19,615.68.

On BSE, 1.22 lakh shares were traded in the counter as against average daily volume of 1.01 lakh shares in the past one quarter.

The stock was volatile. The stock fell as much as 2.06% at the day's low of Rs 945.40 so far during the day. The stock rose as much as 2.45% at the day's high of Rs 989 so far during the day. The stock had hit a record high of Rs 1,026.45 on 10 May 2013. The stock had hit a 52-week low of Rs 636.20 on 4 June 2012.

The stock had outperformed the market over the past one month till 31 May 2013, surging 4.58% compared with the Sensex's 1.31% rise. The scrip had also outperformed the market in past one quarter, jumping 10.82% as against Sensex's 4.77% gain.

The large-cap utility vehicles and tractors maker has equity capital of Rs 306.99 crore. Face value per share is Rs 5.

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Mahindra & Mahindra's (M&M) domestic tractor sales jumped 25% to 22,471 units in May 2013 over May 2012. Exports rose 16% to 1,155 units in May 2013 over May 2012.

Shares of M&M had dropped in early trade after the company on Saturday, 1 June 2013, reported weak sales in its automotive division. Total sales of the automotive division declined 1% at 43,460 units in May 2013 over May 2012. Auto sales in the domestic market rose 5% to 42,104 units in May 2013 over May 2012. The passenger vehicles segment which includes the UVs and Verito registered a growth of 5% at 22,244 units in May 2013 over May 2012. The four-wheeler commercial segment which includes the passenger and load vehicles registered a 12% growth at 14,848 units while the three-wheeler segment witnessed a 7% decline in sales at 4,028 units in May 2013 over May 2012. Exports declined sharply by 67% at 1,356 units in May 2013 over May 2012.

Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, "We have achieved an overall growth of 5% in our domestic volumes during May 2013 for our automotive sector, in spite of a challenging environment. The growth in capital investment and private spending have also slowed down which is a cause for concern. At Mahindra, we remain cautiously optimistic of the situation and do hope that on the back of the new product launches, the auto industry will rev up sooner than later".

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: Jun 03 2013 | 3:14 PM IST

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