M&M’s Exports Grow 28% In October, Farm Equipment Business Surges

Mahindra & Mahindra Ltd. erased early losses after the automaker's sales grew 1 percent in October, driven by a surge in exports. The company's farm equipment business delivered a robust performance, with a 61 percent increase in sales.

Sales of automobiles rose to 52,008 compared to 51,383 in October 2015, the company said in a press release. Domestic sales remained flat at 48,729 vehicles, while exports increased 28 percent to 3,279 vehicles.

The company expects the momentum in exports to continue, Pravin Shah, the president and chief executive officer of the automotive business at Mahindra & Mahindra said in the press release.

Segment-Wise Performance

Passenger vehicle sales grew 3 percent to 24,737 vehicles as against 24,060 vehicles during the year-ago period. The utility vehicle sales also grew 3 percent to 23,399 vehicles.

Commercial Vehicle Segment Disappoints

• Commercial vehicle sales fell 4 percent to 18,059 vehicles compared to 18,756 vehicles in October 2015.
• Medium and heavy commercial vehicle segment sales slumped 19 percent to 471 vehicles compared to 581 vehicles last October.
• Sales of light commercial vehicles weighing over 3.5 tonnes remained flat, while sales of vehicles weighing less than 3.5 tonnes fell 3 percent to 17,182 vehicles.

Farm Equipment: Strong Performance

Sales of tractors and farm equipment rose 61 percent to 45,177 units compared to 28,081 units.

• Domestic sales grew 61 percent to 43,826 units compared to 27,280 units.
• Exports grew 69 percent to 1,351 vehicles as against 801 units.

A good monsoon will positively impact demand going ahead, the company said in its press release.

The M&M stock, which was trading 1.5 percent lower at Rs 1,306.5 as of 9:25 a.m., jumped as much as 2.2 percent after the announcement.