Production cut due to Semiconductor shortages - Automotive Division

Mahindra and Mahindra Ltd's Automotive Division continues to face supply shortages of semiconductors, which has got further accentuated due to Covid lockdowns in some parts of the World.

Consequently the Company will be observing 'No Production Days' of around 7 days in its Automotive Division plants in the month of September, 2021, which is estimated to result in reduction in Production Volumes of the Automotive Division in September, 2021 by 20-25%. The Revenue and profitability will be impacted in line with the fall in production volumes. The Company is taking various cost optimisation measures to limit the impact.

There will be no material impact of the above event on the XUV7OO production ramp-up and launch plans. The date of commencement of Bookings will be announced soon.

The Company's Tractor operations, Exports, Trucks and Buses business and 3-wheeler Production are unaffected by the above disruption.

As the situation is dynamic, the Company is carefully reviewing the supply situation and all efforts are being made to minimize the impact.

Shares of Mahindra & Mahindra Ltd. was last trading in BSE at Rs. 770.15 as compared to the previous close of Rs. 793.05. The total number of shares traded during the day was 283937 in over 4075 trades.

The stock hit an intraday high of Rs. 802.2 and intraday low of 769. The net turnover during the day was Rs. 219461865.

Source : Equity Bulls

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