Mahindra & Mahindra (M&M) was down 1.67% to Rs 541.05 at 13:59 IST on the BSE after the company reported 15% decline in total vehicle sales to 40,142 units in July 2019 from 47,199 units in July 2018.
The announcement was made during the market hours today, 1 August 2019.
Meanwhile, the S&P BSE Sensex was down by 537.92 points or 1.13% to 36,944.83.
On the BSE, 5.57 lakh shares were traded in the counter so far compared with average daily volumes of 2.31 lakh shares in the past two weeks. The stock had hit a high of Rs 592.8 and a low of Rs 560 so far during the day. The stock hit a 52-week high of Rs 709.25 on 5 September 2018 and a 52-week low of Rs 388.33 on 8 October 2018.
Total domestic vehicles sales declined 16% to 37,474 units in July 2019 from 44,605 units in July 2018. The total exports increased 3% to 2668 units in July 2019 from 2594 units in July 2018.
M&M's Farm Equipment Sector (FES) reported a 12% decline in total sales to 19,992 units in July 2019. Total domestic FES sales declined 11% to 19,174 units in July 2019. Total FES exports declined 26% to 818 units in July 2018.
Commenting on the performance, Rajesh Jejurikar, president -FES, said, We have sold 19,174 tractors in the domestic market during July 2019. We hope that the spread of monsoon, government initiatives to increase rural incomes through farm & non-farm sources and an overall improvement in liquidity will spur improvement in tractor demand during the second half of the year. In the export market, we have sold 818 tractors.
Commenting on the performance, Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M said, The headwinds faced by the automotive industry continue as a result of subdued consumer sentiment, triggered by various factors. The industry needs stimuli to help revive consumer demand and conversions. We hope that the overall buying sentiment will improve in the run-up to the festive season and with the monsoon turning out to be better than initially anticipated.
M&M's net profit declined 10.2% to Rs 921.85 crore on 5.5% increase in net sales to Rs 14,035.16 crore in Q4 March 2019 over Q4 March 2018.
Mahindra & Mahindra is engaged in production of automobiles, spare parts, tractors and farm equipment.
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