M&M inches higher after Dec 2019 sales data

Shares of Mahindra & Mahindra (M&M) were trading 0.68% higher at Rs 535.05.

M&M on Wednesday said that its total automotive sales fell 1% to 39,230 units in December 2019, compared with 39,755 units in December 2018.

Total domestic sales rose 1% to 37,081 units while the total exports slumped 30% to 2,149 units in December 2019 over December 2018.

Commenting on the performance, Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, said, "Our performance in the month of December is as per year end sales outlook and currently we are also comfortable with our overall stock levels. As we get into the new year, we are fully equipped to roll out our BSVI products and have taken all requisite measures for a smooth transition over the next three months."

M&M's Farm Equipment Sector sold 17,990 tractors in December 2019, up 3% from 17,404 tractors in December 2018.

Domestic tractor sales in December 2019 were up 4% to 17,213 units, as against 16,510 units during December 2018. Exports for the month fell 13% to 777 units in December 2019 from 894 units December 2018.

Commenting on the performance, Rajesh Jejurikar, President-Farm Equipment Sector, said, Tractor demand looks positive in the near term led by the expectation of a better Rabi output, supported by crop prices and government thrust on irrigation, rural infra & agri sector."

The M&M stock trades between its 20 days simple moving average placed at 521.71 and its 50 days simple moving average placed at 551.24. These levels will act as support and resistance in near term.

M&M's consolidated net profit fell 78.3% to Rs 348.14 crore on a 5.9% decline in net sales to Rs 23,935.93 crore in Q2 September 2019 over Q2 September 2018.

M&M operates in automotive segment comprising of sales of automobiles, farm equipment and sale of spare parts.

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