Muted outlook to weigh on M&M stock; price hikes to make matters worse

In addition to the cut in the GST from the current 28 per cent, the company hoped for scrappage policy to boost demand

India’s largest tractor and utility vehicle company Mahindra & Mahindra posted a weak operational performance, led by a 10 per cent year-on-year fall in the April-June quarter volumes. The volume decline was more in the case of tractors, sales of which were down over 14 per cent from the year-ago quarter. Revenue decline was, however, restricted to 4 per cent, given the price hikes and better product mix. With demand remaining weak for the first four months of the current financial year, volume declines are expected to continue in the near term.

Given the uncertainty on the demand front, the