The company sold 24,017 tractors in domestic market in May 2020 despite Covid-19 induced lockdown
Shares of Mahindra & Mahindra (M&M) were up 4 per cent to Rs 477 on the BSE on Tuesday, having rallied 10 per cent in the past two trading days, after the company sold 24,017 tractors in domestic market in May 2020 despite Covid-19 induced lockdown. It had sold 23,539 units during the same month last year. The timely relaxation of the lockdown for the agricultural sector helped ensure speedy recovery of tractor demand during May.
With the past two day’s gain, the stock of M&M has soared 30 per cent in the last one month, as compared to 0.51 per cent decline in the S&P BSE Sensex. It was trading at its highest level since March 5, 2020.
M&M in press release on Monday said, total tractor sales
(domestic + exports) during May 2020 were at 24,341 units, as against 24,704 units for the same period last year.
"Farmer sentiment is likely to remain positive in the near-term due to several developments including robust Rabi crop production, higher procurement, good price realizations and the forecast of a normal monsoon that bodes well for a good Kharif crop," the management added.
Meanwhile, in the passenger vehicles segment (which includes UVs, Cars and Vans), Mahindra sold 3,867 vehicles in May 2020, compared to 20,608 vehicles in May 2019. In the commercial vehicles segment, the company sold 5,170 vehicles in May 2020, as against 17,879 vehicles in May 2019, the company said.
The company’s performance in the passenger vehicle segment has been muted due to the challenges the industry is facing. The company has opened 70 per cent of its dealerships and retail sales have begun. As new lockdown norms are being announced the management is hopeful of demand gaining traction in the coming months.