M&M gains after strong tractor sales in September

Mahindra & Mahindra (M&M) gained 1% to Rs 613.75 after the company's Farm Equipment Sector (FES) sold 43,386 tractors in September 2020, an increase of 17% against 37,011 tractors sold in September 2019.

M&M's tractor sales jumped 77% in September 2020 from 24,458 units sold in August 2020.

Domestic tractor sales in September 2020 were at 42,361 units, up 18% from 36,046 units during September 2019. Exports for the month rose 6% YoY to 1,025 units.

Commenting on the performance, Hemant Sikka, president - Farm Equipment Sector, Mahindra & Mahindra, said, "Retail demand continued to be buoyant backed by a very good monsoon, higher kharif acreage and continued government support, including higher MSPs for key crops. We are looking forward to a very robust demand for the festive season ahead."

Meanwhile, M&M's total auto sales declined 17% to 35,920 units in September 2020 from 43,343 units sold in September 2019. Sequentially, however, the company's auto sales increased 18% in September 2020 from 30,426 units sold in August 2020.

While total domestic sales declined 16% to 34,351 units, total exports fell 41% to 1,569 units in September 2020 over September 2019.

M&M sold 14,857 passenger vehicles in September 2020, compared to 14,333 vehicles in September 2019, registering a year-on-year (YoY) growth of 4%. It sold 18,907 commercial vehicles in September 2020, as against 18,872 vehicles in September 2019.

Commenting on the performance, Veejay Nakra, chief executive officer, Automotive Division, M&M said, "At Mahindra, we are happy to witness a growth of 6% in utility vehicles. It is also encouraging to see that the enquiry and booking levels in September were significantly higher compared to the previous months, both for UVs and SCVs. With market sentiments indicating a robust festive demand across segments, both in rural and urban markets, we are positive that this festive season will augur well for us as well as the automotive industry.

M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

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