M&M's margins to moderate in coming quarters as input costs weigh in

Volume growth expected to sustain for tractors and improve for auto business going ahead

Led by higher volumes in the tractor business, Mahindra & Mahindra’s (M&M’s) July-September quarter performance across parameters was better than expected.

Though volumes in the automobile segment continue to be sluggish and were down by a fifth over the year-ago quarter, a 30 per cent jump in tractor volumes and higher realisations helped M&M post a 6 per cent growth in revenue over the year-ago quarter.

Farm segment volumes were higher than the automobile segment comprising passenger and commercial vehicles for the second quarter (Q2) on the trot.

The sales momentum in the segment is expected to continue, given the record kharif crop