Mahindra & Mahindra Ltd (M&M Ltd) has reported a 16 per cent year-on-year drop in auto segment sales in August at 30,426 units, while tractor sales offered much-needed relief by growing 65 per cent y-o-y to 24,458 units. M&M had sold 36,085 vehicles during August 2019.
In the passenger vehicles segment, which includes UVs, cars and vans, Mahindra sold 13,651 vehicles in August, compared to 13,507 vehicles in August 2019, a marginal growth of 1 per cent.
In the commercial vehicles segment, the company sold 15,299 vehicles in the month against 14,684 vehicles in August 2019, recording a growth of 4 per cent. Exports for August stood at 1,169 units, recording 54 per cent dip compared to 2,521 units exported in FY20.
"We continue to see good recovery in demand both for SUVs and Pick-ups in the Small Commercial Vehicles segment. For August, we have registered growth in both SUVs and Pick-ups. We have been able to meet the uplift in demand by managing the supply chain challenges," Veejay Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said.
Mahindra & Mahindra's consolidated net profit declined 97 per cent year-on-year to Rs 68 crore for the April-June quarter. The auto major had reported a net profit of Rs 2,260 crore in the same period last year. The overall revenue of the company saw a 56 per cent decline at Rs 5,589 crore as against Rs 12,805 crore in Q1 last year.
Meanwhile, the company stock has risen 1.32 per cent or Rs 8.10 to Rs 614.95 today, compared to the previous session close of Rs 606.90 on the National Stock Exchange.