Mahindra & Mahindra Financial Services consolidated net profit rises 34.39% in the September 2020 quarter
Mahindra & Mahindra (M&M) rose 1.60% to Rs 731.55 after the company said its total tractor sales jumped 56% to 32,726 units in November 2020 over 21,031 in November 2019.
Sequentially, the tractor sales dropped 29.70% in November 2020 compared with 46,558 units in October 2020.
Domestic tractor sales in November 2020 were at 31,619 units as against 20,414 units during November 2019, registering a spurt of 55% YoY (year-on-year). Export for November 2020 stood at 1,107 units, recording a 79% growth over 617 units exported in the same month last year.
Commenting on the performance, Hemant Sikka, the President of Farm Equipment Sector, Mahindra & Mahindra (M&M), has said that: "We have sold 31,619 tractors in the domestic market during November 2020, a growth of 55% over last year. Demand continues to be robust fueled by an excellent festive season with retails being strong during Dhanteras and Diwali. Rural sentiments remain positive on account of higher Kharif output and Rabi sowing. Procurement operations for kharif are on full swing which would keep the rural cash flows healthy. Government's focus on rural growth continues and outlay under Atmanirbhar Bharat 3.0 will provide further fillip to the industry. In the exports market, we have sold 1,107 tractors, a growth of 79% over last year."
Further, M&M said that its total automobile sales (passenger vehicles+commercial vehicles+exports) rose 4% to 42,731 units in November 2020 from 41,235 units in November 2019. M&M's total auto sales slipped 3.67% in November 2020 from 44,359 units sold in October 2020.
Commenting on the Passenger Vehicles performance,Veejay Nakra, the chief executive officer (CEO) of automotive division, M&M stated: "At Mahindra we are happy to achieve strong double-digit growth in SUVs during the month of November, aided by a robust festive demand for all our products. Given strong rural growth and signs of improvement in economic activities, we are hopeful to see this positive momentum continue post the festive season."
"We have witnessed double digit growth in Pick-ups. Our Small Commercial Vehicle brands Bolero Pik Up, Supro and Jeeto continue to see strong demand in both rural and urban markets," he added.
M&M reported 59.7% decline in net profit to Rs 148.36 crore in Q2 FY21 from Rs 368.43 crore in Q2 FY20. Net sales fell 1.5% year-on-year (Y-o-Y) to Rs 23,566.75 crore during the quarter.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
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