The company’s total revenue rose by 24% to Rs 133.55 billion during Q4FY18, compared to Rs 107.95 billion in the year-ago period, boosted by strong sales across tractors and utility vehicles.
On outlook, the company said economic activity is expected to gather pace as the transitory effects of implementation of the goods and services tax (GST) recede. This outlook will also be lifted by tailwinds from normal rainfall with the weather bureau forecasting a 'normal' monsoon for the third successive year in its first stage long range forecast.
While the spatial and temporal distribution remain to be seen, well spread out rainfall is likely to have a salutary impact on the overall demand conditions. However, rising crude oil prices, which have already risen noticeably, call for greater prudence, it added.
“Management expects volume uptick to persist in FY19, with growth for UV industry pegged at 15%, for CV industry at 10-12% and for Tractor industry at 8-10%. To support volume, new products have been planned in UVs (3 new launches: U321, S201 and Y400), CVs (multiple launches in 7.5-16.2T segments) and 3Ws in FY19,” analysts at Emkay Global Financial Services said in result update with ‘buy’ rating on the stock and 12 month target price of Rs 960 per share.
At 09:30 am; shares of M&M was trading 2.6% higher at Rs 891 on the BSE, as compared to 0.58% decline in the S&P BSE Sensex. The stock surpassed its previous high of Rs 887.95 recorded on May 7, 2018 on the BSE in intra-day trade.