M&M drops after weak sales in April

Mahindra & Mahindra fell 1.51% to Rs 1,056 at 10:43 IST on BSE after the company reported weak sales in April 2014 over April 2013.

The sales figures were announced on Thursday, 1 May 2014, when the stock market was closed on account of May Day.

Meanwhile, the BSE Sensex was up 64.97 points, or 0.29%, to 22,482.77

On BSE, so far 15,263 shares were traded in the counter, compared with an average volume of 75,798 shares in the past one quarter.

The stock hit a high of Rs 1,068 and a low of Rs 1,046.10 so far during the day. The stock hit a record high of Rs 1,091 on Wednesday, 30 April 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 30 April 2014, gaining 10.85% compared with the Sensex's 0.35% rise. The scrip also outperformed the market in past one quarter, advancing 23.33% as against Sensex's 9.36% 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)'s Farm Equipment Sector's (FES) domestic sales fell 10% to 19,895 units in April 2014 over April 2013. Total tractor sales (domestic + exports) dropped 11% to 20,731 units in April 2014 over April 2013. Exports declined 17% to 836 units in April 2014 over April 2013.

Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, Mahindra & Mahindra said, "We have registered a sale of 19895 units during April 2014. Unseasonal rains and hail during March in some parts of the country has impacted sentiment leading to lower sales of tractors in April. We do hope that the onset of monsoon brings cheer to farmers and the agriculture industry alike".

M&M's auto sales declined 12% to 36,274 units in April 2014 over April 2013. Exports rose 42% to 2167 units in April 2014 over April 2013. Domestic sales declined 15% to 34107 units in April 2014 over April 2013.

Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said, "It is unfortunate that the auto industry has not seen an upturn over the last couple of months in spite of a reduction in excise duty. We do hope that post the general elections, sentiments improve leading to a better economic situation and hence increased demand. At Mahindra, we are happy with our Exports performance for the month and we continue to be optimistic going forward and expect to witness a gradual upswing on the back of our product offerings and customer centric initiatives".

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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