M&M inches up after strong SsangYong sales
Capital Market / 13:08 , Jan 02, 2014
Mahindra & Mahindra rose 0.44% to Rs 951.75 at 13:06 IST on BSE after the company said SsangYong Motor's total sales rose 11.8% at 13,271 units in December 2013 over December 2012.

The company made the announcement during trading hours today, 2 January 2014.

Meanwhile, the BSE Sensex was up 140.34 points, or 0.66%, to 21,280.82.

On BSE, so far 30,000 shares were traded in the counter, compared with an average volume of 88,170 shares in the past one quarter.

The stock hit a high of Rs 958.75 and a low of Rs 943.35 so far during the day. The stock hit a record high of Rs 1,026.45 on 20 May 2013. The stock hit a 52-week low of Rs 741.50 on 28 August 2013.

The stock had underperformed the market over the past one month till 1 January 2014, rising 0.21% compared with the Sensex's 1.68% rise. The scrip had, however, outperformed the market in past one quarter, rising 13.70% as against Sensex's 8.32% rise.

The large-cap company has an equity capital of Rs 307.94 crore. Face value per share is Rs 5.

SsangYong Motor's total sales of 13,271 units in December 2013 comprised sales of 6,584 units in the domestic market and 6,687 of exports with CKD kits. SsangYong Motor is a Korean subsidiary of M&M.

SsangYong Motor's total sales jumped 20.7% to 145,649 units in calendar year 2013 over calendar year 2012. SsangYong said its annual sales rose for the fourth consecutive year in 2013. The company stressed that such performance was largely driven by the successful launches of the face-lifted models which reflect consumer needs, settlement of healthy relations between labor and management, and the workers' efforts and cooperation in order to expand supply.

Lee Yoo-il, CEO of SsangYong Motor, commented: We achieved a great upward trend for four straight years backed by the successful launches of the face-lifted models and the labor's efforts to increase the production. We will further expand our global sales this year through the differentiated marketing strategies and efforts to explore new overseas markets based on constructive labor-management relations.

M&M during market hours on Monday, 1 January 2014, said that its total auto sales declined 13% to 39,611 units in December 2013 over December 2012.

M&M separately said that its total tractor sales rose 15% to 17,037 units in December 2013 over December 2012. Tractor sales in the domestic market rose 19% to 16,257 units in December 2013 over December 2012. Exports fell 26% at 780 units in December 2013 over December 2012.

M&M's net profit rose 9.7% to Rs 989.50 crore on 8.7% decline in net sales to Rs 8814.33 crore in Q2 September 2013 over Q2 September 2012.

The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries.