M&M slips after weak tractor sales in January

Mahindra & Mahindra fell 1.08% to Rs 1,249.40 at 14:24 IST on BSE after the company's total tractor sales declined 26% to 14,913 units in January 2015 over January 2014.

The announcement was made during trading hours today, 2 February 2015.

Meanwhile, the BSE Sensex was down 17.10 points, or 0.06%, to 29,165.85.

On BSE, so far 45,000 shares were traded in the counter, compared with an average volume of 66,170 shares in the past one quarter.

The stock hit a high of Rs 1,284.80 and a low of Rs 1,240.05 so far during the day. The stock hit a record high of Rs 1,421 on 4 September 2014. The stock hit a 52-week low of Rs 847 on 4 February 2014.

The stock had underperformed the market over the past one month till 30 January 2015, rising 0.42% compared with 6.49% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.91% as against Sensex's 6.72% rise.

The large-cap company has an equity capital of Rs 310.55 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) said its total domestic tractor sales fell 29% to 13,852 units in January 2015 over January 2014. Total tractor exports jumped 47% to 1,061 units in January 2015 over January 2014.

Commenting on monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and two-wheeler division, M&M said, "The tractor industry has been going through a de-growth caused by reduced Kharif crop production and lower mandi prices."

Separately, M&M announced that its auto sector reported 6% decline in total sales to 39,930 units in January 2015 over January 2014. Exports rose 22% to 2,885 units in January 2015 over January 2014. Domestic sales fell 8% to 37,045 units in January 2015 over January 2014.

Commenting on monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, "The first month of 2015 has not been encouraging as the effect of withdrawal of excise duty subsidy is clearly evident. Unfortunately, the segmented recovery which we were witnessing over the last couple of months has been impacted with the excise duty change. We do hope that the upcoming Union Budget has some positive news for the auto sector."

M&M's net profit fell 4.3% to Rs 946.63 crore on 6.8% growth in net sales to Rs 9418.10 crore in Q2 September 2014 over Q2 September 2013.

Mahindra Group enjoys a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two-wheeler industries.

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