M&M turns volatile after auto, tractor sales data for August

Mahindra & Mahindra rose 0.08% to Rs 1407.95 at 15:25 IST on BSE after the company said its total tractor sales rose 6% to 15,006 units in August 2014 over August 2013.

The sales numbers were announced during market hours today, 1 September 2014.

Meanwhile, the S&P BSE Sensex was up 238.28 points or 0.89% at 26,876.39.

On BSE, so far 44,000 shares were traded in the counter as against average daily volume of 2.80 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.79% at the day's high of Rs 1,418 so far during the day, which is also a record high for the counter. The stock lost as much as 0.98% at the day's low of Rs 1,393 so far during the day. The stock had hit a 52-week low of Rs 741.50 on 28 August 2013.

The stock had outperformed the market over the past one month till 28 August 2014, advancing 17.16% compared with Sensex's 2.49% rise. The scrip had also outperformed the market in past one quarter, jumping 21.03% as against Sensex's 8.48% rise.

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

Mahindra & Mahindra (M&M)'s domestic tractor sales rose 1% to 13,733 units in August 2014 over August 2013. Exports jumped 107% to 1,273 units in August 2014 over August 2013.

Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, M&M, "We have achieved a domestic growth of 1% during August 2014. Deficient rainfall has disturbed the timely sowing of crops and impacted farmer sentiments. However, we hope that the approaching festive season will give a boost to the industry growth in the months to come".

Separately, M&M during market hours today, 1 September 2014 said its total auto sales declined 7.18% to 35,175 units in August 2014 over August 2013. Domestic sales fell 5.72% to 33,145 units in August 2014 over August 2013. Exports declined 25.85% to 2,030 units in August 2014 over August 2013. Four-wheeler commercial vehicle sales fell 5.41% to 12,975 units in August 2014 over August 2013. Three-wheeler sales rose 5.51% to 5,433 units in August 2014 over August 2013.

Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division & International Operations (AFS), M&M said, "In spite of our overall sales remaining flat in August, we continue to be optimistic due to the industry's enhanced business confidence which is reflected by the manufacturing sector showing signs of revival. We do hope that the government continues to drive the agenda of reforms together with execution which would spur investments. The automotive industry, including us, is hopeful of a better demand leading up to the ensuing festival season".

On a comparable basis, the combined net profit of M&M and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) rose 4.3% to Rs 896.40 crore on 1.09% decline in gross revenue plus other income to Rs 10823.30 crore in Q1 June 2014 over Q1 June 2013.

MVML, located at Chakan near Pune, was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of M&M.

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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