M&M jumps after reporting strong tractor sales in October

Mahindra & Mahindra rose 3% to Rs 915.70 at 13:47 IST on BSE after the company reported strong growth in tractor sales in October 2013 over October 2012.

Meanwhile, the BSE Sensex was up 6.02 points, or 0.03%, to 21,170.54.

On BSE, 1.82 lakh shares were traded in the counter compared with average volume of 1.38 lakh shares in the past one quarter.

The stock hit a high of Rs 913.80 and a low of Rs 881 so far during the day. The stock hit a record high of Rs 1,026.45 on 20 May 2013. The stock hit a 52-week low of Rs 741.50 on 28 August 2013.

The stock had underperformed the market over the past one month till 31 October 2013, rising 7.31% compared with the Sensex's 9.21% rise. The scrip had also underperformed the market in past one quarter, sliding 2.61% as against Sensex's 9.40% rise.

The large-cap company has an equity capital of Rs 307.94 crore. Face value per share is Rs 5.

Mahindra & Mahindra's (M&M) total tractor sales jumped 29% to 38,263 units in October 2013 over October 2012. Tractor sales in the domestic market jumped 30% to 37,532 units, while exports rose 5% to 731 units in October 2013 over October 2012.

Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, said, "The tractor industry continues to do well overall and has seen a healthy growth this fiscal. At Mahindra, we are happy to maintain a robust growth momentum with a 30% domestic growth during October 2013. This is on the back of a good monsoon, improved cash flows as well as greater mechanization."

M&M separately also reported monthly sales data of its automobiles division. The company's total auto sales fell 5% to 50,558 units in October 2013 over October 2012. Total domestic sales fell 7% to 47,787 units in October 2013 over October 2012.

Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said: "During such tough and challenging times, we are heartened with our performance in October 2013 which has grown by 17% over the last month. In spite of new launches, the auto sector has witnessed a de-growth of nearly 5% during the first half of FY 2013-14 and the recent repo rate hike may prove to be a dampener for potential customers. The auto industry continues to look forward to an immediate support in terms of a stimulus package to perk it up as well as bring back the growth momentum for the economy in general & automotive sector in particular".

M&M's net profit rose 29.3% to Rs 937.91 crore on 7.1% growth in net sales to Rs 9906.23 crore in Q1 June 2013 over Q1 June 2012. The company will announce Q2 results on 13 November 2013.

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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