M&M declines after reporting weak tractor & auto sales for July

Mahindra & Mahindra declined 1.52% to Rs 1,340.85 at 10:20 IST on BSE after the company reported weak tractor and auto sales in July 2015.

The company announced sales figures for July 2015 on Saturday, 1 August 2015.

Meanwhile, the S&P BSE Sensex was up 71.55 points or 0.28% at 28,192.90.

On BSE, so far 8,026 shares were traded in the counter as against average daily volume of 61,012 shares in the past one quarter.

The stock hit a high of Rs 1,355 and a low of Rs 1,337.10 so far during the day. The stock had hit a record high of Rs 1,421 on 4 September 2014. The stock had hit a 52-week low of Rs 1,106 on 10 February 2015.

The stock had outperformed the market over the past one month till 31 July 2015, rising 6.28% compared with Sensex's 1.2% gain. The scrip had also outperformed the market in past one quarter, gaining 18.9% as against Sensex's 4.08% gain.

The large-cap auto company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) said that its total tractor sales dropped 11% to 15,460 units in July 2015 over July 2014. Domestic tractor sales fell 13% to 14,273 units in July 2015 over July 2014. Exports rose 15% to 1,187 units in July 2015 over July 2014.

Separately, M&M said that its total auto sales fell 3% to 34,652 units in July 2015 over July 2014. Total domestic sales dropped 6% to 31,087 units in July 2015 over July 2014. Total exports rose 41% to 3,565 units in July 2015 over July 2014.

M&M's net profit fell 38.6% to Rs 550.56 crore on 13.2% drop in net sales to Rs 9411.52 crore in Q4 March 2015 over Q4 March 2014.

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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