M&M reports 13% rise in April sales, shares rise nearly 2%

Mahindra & Mahindra (M&M) on Thursday announced its overall auto sales including exports for the month of April 2024 grew 13% to 70,471 vehicles. Shares of the company were trading nearly 2% higher.

The company said its utility vehicles segment saw a growth of 18%, having sold 41,008 vehicles in the domestic market. The domestic sales for commercial vehicles stood at 22,102, it said.

At the same time, Mahindra’s farm equipment sector sold 35,805 units in India in April 2024, as against 35,398 units in the same period last year. Total tractor sales during April 2024 increased to 37,039 units, as against 36,405 units for the same period last year. Exports for the month stood at 1,234 units, registering a growth of 23% over last year, the company said.

Hemant Sikka, President – Farm Equipment Sector at Mahindra & Mahindra said the government's wheat procurement operations are going on in full swing with good mandi arrivals, keeping the rural cash flows healthy. “IMD's forecast of above normal monsoon rains and festivals in the month of April have helped bring positivity in the rural sentiments. Terms of trade continue to stay positive and good cash flows from the Rabi harvest are likely to boost tractor demand in the coming months,” he said.

For the third quarter of fiscal year 2024, M&M had reported a 15% rise in revenue at ₹35,299 crore. Net profit fell 1% to ₹2,658 crore during the quarter. The company said it saw its highest-ever Q3 volumes at 2.11 lakh, up 20%. M&M also witnessed its highest-ever UV volumes at 1.19 lakh.

The firm’s tractor market share stood at 41.8%, up 80 basis points marking the highest Q3 market share since FY19, it said.

Shares of the company have risen 29% since the beginning of the year. The stock has gained over 77% in the last one year.