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M&M slips after weak tractor sales in October

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Capital Market
Last Updated : Nov 03 2014 | 1:00 PM IST

Mahindra & Mahindra lost 3.16% to Rs 1,262.25 at 11:23 IST on BSE after the company said its total tractor sales declined 17% to 31,907 units in October 2014 over October 2013.

The sales data was announced yesterday, 2 November 2014.

Meanwhile, the S&P BSE Sensex was down 44.53 points or 0.16% at 27,821.30.

On BSE, so far 77,000 shares were traded in the counter as against average daily volume of 66,402 shares in the past one quarter.

The stock hit a high of Rs 1,303 and a low of Rs 1,258.45 so far during the day. The stock had hit a 52-week low of Rs 847 on 4 February 2014. The stock had hit a record high of Rs 1,421 on 4 September 2014.

The stock had underperformed the market over the past one month till 31 October 2014, sliding 4.32% compared with Sensex's 4.64% rise. The scrip had, however, outperformed the market in past one quarter, surging 8.26% as against Sensex's 7.61% rise.

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The large-cap company has equity capital of Rs 310.54 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M)'s domestic tractor sales fell 18% to 30,800 units in October 2014 over October 2013. Exports surged 51% to 1,107 units in October 2014 over October 2013.

Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, M&M said, "We have registered a sale of 30,800 units during October 2014. The delayed rains and sowing has led to a sluggish industry. Our recently launched Arjan Novo tractor has been very well received in the market and we hope that this will help us drive sales in a challenging environment".

Separately, M&M said its total total auto sales declined 15% to 42,776 units in October 2014 over October 2013. The passenger vehicles segment sales declined 19,254 units in October 2014 over October 2013. Domestic sales fell 16% to 40,274 units in October 2014 over October 2013. The 4-wheelers commercial segment sales declined 15% to 14,812 units in October 2014 over October 2013. Three-wheeler segment sales fell 19% to 5,678 units in October 2014 over October 2013. Exports declined 10% to 2,502 units in October 2014 over October 2013.

Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division & International Operations (AFS), M&M said, "Our sales for the month of October remain subdued on the back of overall sentiment and high interest rates. However I'm happy with our retail sales this month which has helped bring the system stocks to an optimal level. We do hope that the recently announced deregulation of diesel prices will also support the auto industry. We are happy with the response to our New Generation Scorpio for which we are thankful to our customers".

On comparable basis, the combined net profit of M&M and its entity Mahindra Vehicle Manufacturers (MVML) rose 1.7% to Rs 974.10 crore on 4.7% growth in gross revenue and other income to Rs 10400.90 crore in Q2 September 2014 over Q2 September 2013.

Mahindra Group enjoys a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two-wheeler industries.

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First Published: Nov 03 2014 | 11:19 AM IST

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