M&M drops after reporting weak auto sales in November

Mahindra & Mahindra lost 1.12% to Rs 935 at 9:18 IST on BSE after the company said its total auto sales declined 18% to 39,255 units in November 2013 over November 2012.

The sales numbers were announced on Sunday, 1 December 2013.

Meanwhile, the S&P BSE Sensex was up 78.46 points or 0.38% at 20,870.39.

On BSE, 1,230 shares were traded in the counter as against average daily volume of 1.21 lakh shares in the past one quarter.

The stock hit a high of Rs 942 and a low of Rs 937 so far during the day. The stock had hit a 52-week low of Rs 741.50 on 28 August 2013. The stock had hit a record high of Rs 1,026.45 on 20 May 2013.

The stock had outperformed the market over the past one month till 29 November 2013, rising 5.03% compared with the Sensex's 0.65% fall. The scrip had also outperformed the market in past one quarter, jumping 19.12% as against Sensex's 12.99% rise.

Mahindra & Mahindra (M&M)'s sales of Passenger Vehicles segment (which includes UVs and Verito) dropped 32% to 16,771 units in November 2013 over November 2012. Domestic sales fell 22% to 36,261 units in November 2013 over November 2012. The 4-wheelers commercial segment sales declined 8% to 13,186 units while the 3-wheelers segment sales fell 15% to 5,861 units in November 2013 over November 2012. Exports for the month stood at 2,994 units as against 1,388 units in November 2012, representing a substantial growth.

Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said, "Post the festive season month of October, the auto industry has turned to further de-growth and continues to remain subdued. Unless some concrete measures are provided for its revival, we do not foresee any immediate turnaround. Factors such as increase in input costs and the depreciating rupee have not helped in any way. At Mahindra, we continue to focus on operational excellence to augment our overall performance and remain cautiously optimistic of the situation".

Separately, M&M reported a 13% growth in total tractor sales to 23,119 units in November 2013 over November 2012. Domestic tractor sales rose 13% to 22,343 units in November 2013 over November 2012. Exports rose 8% to 776 units.

Speaking on the sector's monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said "Following the festive season, we are happy to keep up our sales momentum with a growth of 13% in November 2013. On the back of a good monsoon, we expect the robust demand for tractors to continue during the remaining months of this financial year".

M&M's net profit rose 9.7% to Rs 989.50 crore on 8.7% decline in net sales to Rs 8814.33 crore in Q2 September 2013 over Q2 September 2012.

The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries.

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