M&M: Tractor sales help beat Street estimates

Robust outlook for segment masks weak UV prospects

Mahindra & Mahindra’s (M&M’s) March quarter (Q4) performance was along similar lines of previous quarters with the tractor business showing strong volume growth and gaining market share, while the utility vehicle (UV) business struggled despite the industry growing at a robust pace. Driven by a 15.5 per cent year-on-year (y-o-y) growth in tractors and higher realisations, revenues grew 4.3 per cent to Rs 10,612 crore, which was better than consensus estimates which pegged it at Rs 10,573 crore. 

Despite the fall in volumes in the segment by 1.8 per cent, the company managed to improve its revenues in the segment