M&M declines on plan to stop production for 3 days

Mahindra & Mahindra fell 1.05% to Rs 1,123.45 at 13:10 IST on BSE after the company said it has decided to enforce no production days for up to three days during the remaining period of May 2014.

The company made the announcement during trading hours today, 21 May 2014.

Meanwhile, the BSE Sensex was down 209.86 points, or 0.86%, to 24,167.02.

On BSE, so far 32,000 shares were traded in the counter, compared with an average volume of 88,091 shares in the past one quarter.

The stock hit a high of Rs 1,148.70 and a low of Rs 1,123 so far during the day. The stock hit a record high of Rs 1,180.55 on 16 May 2014. The stock hit a 52-week low of Rs 741.50 on 28 August 2013.

The stock had outperformed the market over the past one month till 20 May 2014, rising 13.84% compared with 7.72% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 22.13% as against Sensex's 18.70% rise.

The large-cap company has an equity capital of Rs 307.94 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) said that as part of aligning its production with sales requirements, it will be observing no production days at its automotive plants for upto three days during the remaining period of May 2014.

The company also informed that one of its wholly-owned subsidiary viz, Mahindra Vehicle Manufacturers' plant at Chakan would also be observing no production days for upto three days during the remaining period of May 2014.

The management does not envisage any adverse impact on availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements, M&M said in a statement.

M&M's consolidated net profit declined 1.93% to Rs 1230 crore on 8.5% growth in gross revenue and other income to Rs 20679.90 crore in Q3 December 2013 over Q3 December 2012. On a like to like basis, M&M's consolidated revenue rose 11.7% in Q3 December 2013 over Q3 December 2012.

The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.

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