Mahindra and Mahindra - Auto Monthly - June - 2013 - Angel Broking

Mahindra & Mahindra (MM) reported mixed performance with automotive segment witnessing a sharp decline of 7.8% yoy (12.4% mom) due to the slowdown in the passenger vehicle segment; however, the tractor segment continued its strong momentum and reported better-than-expected growth of 16.8% yoy (17.5%). As a result, the total sales of the company posted a modest growth of 1.2% yoy (down 1.9% mom) to 65,841 units. The automotive segment recorded lower-than-expected sales as the volumes were impacted due to a 12.9% yoy (22.5% mom) decline in the passenger vehicle segment on account of the slowdown in demand for utility vehicles following an increase in excise duty and also due to increasing competition in the segment. The tractor segment witnessed a strong growth with domestic volumes increasing by 18.8% yoy (18.9% mom) on expectations of normal monsoon and improved prospects for kharif crop.

Source : Equity Bulls

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