M&M declines on plans of observing no production days

Mahindra & Mahindra (M&M) declined 1.85% to Rs 1,294.05 at 9:58 IST on BSE after the compnay said that it would be observing no production days at the company's tractor plants located at Rudrapur and Jaipur.

The company made announcement after market hours on Friday, 10 October 2014.

Meanwhile, the BSE Sensex was down 159.68 points, or 0.61%, to 26,132.98.

On BSE, so far 5,124 shares were traded in the counter, compared with an average volume of 2.88 lakh shares in the past one quarter.

The stock hit a high of Rs 1,321.40 and a low of Rs 1,292.05 so far during the day. The stock hit a record high of Rs 1,421 on 4 September 2014. The stock hit a 52-week low of Rs 847 on 4 February 2014.

The stock had underperformed the market over the past one month till 10 October 2014, falling 4.77% compared with Sensex's 2.81% decline. However, the scrip had outperformed the market in past one quarter, jumping 13.18% as against Sensex's 3.64% rise.

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

No production days at these two tractor plants will be observed during the balance period of October, 2014 as a part of aligning company's production with sales requirements. The management does not envisage any adverse impact on availability of tractors in the market due to adequacy of tractor stocks to serve the market requirements, M&M said in a statement.

On a comparable basis, the combined net profit of M&M and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) rose 4.3% to Rs 896.40 crore on 1.09% decline in gross revenue plus other income to Rs 10823.30 crore in Q1 June 2014 over Q1 June 2013.

MVML, located at Chakan near Pune, was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of M&M.

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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