M&M slides after Q1 results

Mahindra & Mahindra was down 0.11% to Rs 932.05 at 13:52 IST on BSE after the company announced Q1 results during trading hours today, 7 August 2018.

Meanwhile, the S&P BSE Sensex was up 18.42 points, or 0.05% to 37,710.31.

On the BSE, 2.36 lakh shares were traded in the counter so far compared with average daily volumes of 1.41 lakh shares in the past two weeks. The stock had hit a high of Rs 945 so far during the day, which is also record high for the counter. The stock had hit a low of Rs 924.75 so far during the day. The stock hit a 52-week low of Rs 612.50 on 27 September 2017.

The results for M&M include the combined results of Mahindra and Mahindra (M&M) and Mahindra Vehicle Manufacturers Limited (MVML), which is a manufacturing unit of M&M.

Combined profit from ordinary activities after tax (after El) rose 67% to Rs 1257 crore in Q1 June 2018 over Q1 June 2017.

Combined revenues and other income rose 23% to 13551 crore in Q1 June 2018 over Q1 June 2017.

Combined operating profit margin (OPM) was reported at 15.8% in Q1 June 2018, higher than 13.2% in Q1 June 2017.

In Q1 June 2018, the total domestic automotive volume for the company grew by 16.2%. The heavy commercial vehicles (HCV) volume grew 123.4% resulting in a market share of 5.7%. The company exported 9,360 vehicles during the current quarter, a growth of 100.2% over the corresponding quarter previous year. The company's domestic tractor sales grew by 18.8% in Q1 June 2018 and the Farm Equipment Segment's revenue and results crossed the landmark numbers of Rs 5000 crore and Rs 1000 crore respectively, the company said in a statement.

In its outlook, M&M said that consumption, both rural and urban, remains healthy. A normal monsoon, with a satisfactory temporal and spatial distribution, combined with the recently approved higher MSP for kharif crops should help support rural consumption further. Improving capacity utilisation and credit offtake too augur well for investment activity. While RBI's GDP growth forecast for 2018-19 has been retained at 7.4%, growth is estimated to be more front-ended. Global growth backdrop has remained buoyant so far. However, the recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions. These could pose risks to global recovery and investments.

M&M enjoys a leadership position in utility vehicles, and is the world's largest tractor company, by volume.

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