Tag: M&M

TVS best bet in two-wheeler segment; bullish on Ashok Leyland, M&M, Maruti: Nirmal Bang Institutional

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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TVS Motor Company is probably the best bet in the two-wheeler bracket, Rahul Arora, CEO of Nirmal Bang Institutional Equities, told CNBC-TV18.

“TVS is probably the best place, according to us, in the two-wheeler bracket. And of course, in passenger vehicles, Maruti Suzuki is the only proxy. So, most of the issues are transient; more medium-term issues, but once you tide over them, some of these names, like Ashok Leyland, M&M, TVS, Maruti could still be a very good portfolio hold for the long-term,” he said.

Also Read: Domestic auto wholesales fall nearly 12% YoY to 15.8 lakh units in August: SIAM

Arora further said, “The biggest issue plaguing the industry is the semiconductor shortage and it seems like this is a transient issue as well. I don’t think anyone can put a lid on exactly when this problem would resolve itself, but looking at the global semiconductor companies, their capex for the next one year is actually higher than it was in the pre-COVID era by 15-20 percent, which is quite astounding. So once this issue does resolve itself, in 6-12 months from now, in totality, this particular issue will be put to bed. The issue then will probably go back to demand.”

Also Read: ‘Still sweating & slaving away at it’, Anand Mahindra responds to Elon Musk on auto industry woes

On Zomato, he said, “Let’s see how the Zomato story plays out. It’s a test of institutional investors as well; it is a loss-making company. The mindset is very different from private equity, they are going to ask for RoEs and RoCs eventually, so they are giving the benefit of the doubt. If you are holding it, hold on. You will still make some money, but I will be watching this space carefully.”

For the entire interview, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M’s rural India outlook positive on good rabi procurement, cash flow

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra & Mahindra (M&M) is in focus on the back of strong tractor sales in June. The total tractor sales went up 32 percent, export jumped over 90 percent and the market share rose to 42.5 percent. The company is optimistic about tractor demand in the coming months.

Hemant Sikka, President of Farm Equipment Sector at Mahindra & Mahindra, in an interview with CNBC-TV18, said that the rural outlook looks bright as demand has increased in June.

“Overall, the rabi procurement has gone around very well. Cash flow in the rural heartland is very positive. Also, with the second wave of COVID subsiding, confidence is coming back. So, it was a play of two factors, clearly a little bit of pent-up demand and also some fresh demand coming in and that is why June has played out so well for the industry overall,” he elaborated.

The farm sector equipment industry has grown by 19 percent in June and Mahindra has outperformed showing 32 percent growth. Does this mean there will be a guidance revision too?

“Looking at the months, going ahead, we are getting into a very high base in Q2, Q3 and Q4 so I would suggest we wait for July and August, see how the monsoon pans out and then maybe at the beginning of September, we will be able to revise the guidance,” Sikka weighed in.

Inventory is another discussion point because of the enforced lockdown-like situations due to the second wave of the COVID-19 pandemic.

“None of the players have very high inventory. In Mahindra also, we have a very reasonable inventory. In fact, we have reduced inventory in Q1, so production will be running at full capacity,” Sikka said.

Automakers have raised prices in recent times with most citing increased output costs as a reason. Mahindra too plans to gradually do so.

“We have taken our latest price increase only on July 1. We have taken a 3 percent price increase,” Sikka said.

For full management commentary, watch the video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M June auto sales rise to 32,964 units; tractor sales at 48,222 units

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra & Mahindra (M&M) on Thursday reported total auto sales, including passenger vehicles and commercial vehicles, for the month of June 2021 at 32,964 vehicles. This was higher by 70.3 percent as compared to 19,358 units sold in the same month last year.

The company’s auto sales beat CNBC-TV18 analysts’ poll estimates of 27,316 units.

“With the opening up of the market in a phased manner, we are seeing a boost in demand in both urban and rural and we expect the upward trend in demand to continue across all segments and markets,” said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.

In the Utility Vehicles segment, Mahindra sold 16,636 vehicles in June 2021. The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 16,913 vehicles during the month.

Exports for the month of June 2021 were at 2607 vehicles.

“As we come out of the second wave of the pandemic, by and large, our supply chain has stabilized except for the global semiconductor issue, which still continues to be a challenge that we are addressing as a top priority,” Nakra added.

M&M’s Farm Equipment Sector (FES), posted total tractor sales of 48,222 units in June 2021, a rise of 32 percent from 36,544 units in June 2020. Tractor sales were better than estimates of 37,074 units.

Domestic sales during the month rose 31 percent to 46,875 units as against 35,844 units, while exports jumped 92 percent to 1,347 units from 700 units, YoY.

“The sharp fall in Covid-19 cases and resultant easing of related restrictions, arrival of timely monsoon, increase in MSP rates for key kharif crops and continued strong Government support to all agri activities is giving a very strong momentum to tractor demand,” said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra.

Sikka said the company continues to remain optimistic about the progress of the monsoon and tractor demand in the coming months.

At 2:05 pm, the shares of M&M were trading 0.33 percent higher at Rs 780.90 apiece on the BSE.

Catch all the latest updates from the stock market here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M dips over 6%; Should investors buy, sell or hold?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Mahindra & Mahindra (M&M) corrected over 6 percent in early trade on Monday on profit-booking as the auto major kept conservative guidance for the tractor industry despite reporting a profitable quarter. Meanwhile, brokerages remained mixed on outlook and set modest price targets on the M&M stock amid persisting pandemic woes.

M&M and Mahindra Vehicular Manufacturing (MVML) on Friday had reported a combined net profit of Rs 163 crore for the quarter ended March 2021 as compared to a net loss of Rs 3,255 crore in the year-ago period.

M&M and MVML’s combined revenues during the quarter increased 48 percent to Rs 13,338 crore from Rs 9,005 crore, YoY.

M&M gave conservative guidance for the tractor industry. The management said the tractor industry will grow in the low single digits in FY22. This compares to the 28 percent growth in FY21.

Read here: M&M and MVML post Q4 net profit of Rs 163 crore; revenue up 48%; declares dividend of Rs 8.75

Global brokerage firm CLSA increased its core EPS estimates for FY22-23 by 3 percent-5 percent and raised the target price to Rs 1,090 percent from Rs 1,060 earlier and maintained its ‘buy’ rating.

“Mahindra’s (M&M) 4QFY21 results were above expectations due to better-than-expected margins for the farm and auto segments. Its FY22-24 guidance on the capital deployment of Rs 170 billion was a tad higher than what the market was anticipating. However, management maintained its medium-term ROE goal of 18%,” CLSA said in a report.

M&M is also part of CLSA’s India focus list.

Also Read: Higher demand to start coming up in next few months, M&M’s Anish Shah

UBS maintained a buy call on the stock on improving return profile and strong outlook. It has set a target price of Rs 1,030 per share. M&M’s Q4 results were in line with UBS estimates.

The international automobile and farm equipment segment (FES) will break even by FY23, while capex will limit meaningful FCF generation, UBS said.

Goldman Sachs also has a buy rating on M&M with a target of Rs 993 per share. It said that the company’s Q4 earnings were in line with expectations and focused on the long term. The margin was up 83 bps YoY, underscoring robust cost controls.

M&M is UBS’s preferred pick in the PV/CV space with valuations attractive at current levels.

However, Phillip Capital has downgraded M&M to ‘sell’ and lowered the FY22 and FY23 estimates on the back of the conservative tractor guidance as well as the raised capital allocation plans.

ICICI Direct has a positive stance on M&M due to its focus on prudent capital allocation, healthy growth plans and EV proactiveness. It retained buy with an unchanged target price of Rs 1,000 per share.

At 10:00 am, the shares of M&M were trading 6.10 percent lower at Rs 794.60 apiece on the BSE.

Catch all the latest updates from the stock market here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M and MVML post Q4 net profit of Rs 163 crore; revenue up 48%; declares dividend of Rs 8.75

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Automobile major Mahindra & Mahindra (M&M) and Mahindra Vehicular Manufacturing (MVML) on Friday reported a combined net profit of Rs 163 crore for the quarter ended March 2021 as compared to a net loss of Rs 3,255 crore in the year-ago period.

M&M and MVML’s combined revenues during the quarter increased 48 percent to Rs 13,338 crore from Rs 9,005 crore, YoY.

M&M reported a one-time loss at Rs 840 crore during the quarter. Net profit before exceptional item at Rs 1,002 crore against Rs 323 crore, YoY.

Automotive business revenue during the quarter grew 42.7 percent to Rs 7,858.1 crore as against Rs 5,505.8 crore, YoY.

Automotive business EBIT jumped 73.1 percent to Rs 390 crore from Rs 225.3 crore, while the segment’s EBIT margin rose to 5 percent from 4.1 percent, YoY.

EBITDA in Q4FY21 rose 59.7 percent to Rs 1,960 crore from Rs 1,227 crore, while EBITDA margin improved by 110 bps to 14.7 percent from 13.6 percent, YoY.

“Overall demand remained robust for the company’s products in Q4FY21. However, the global shortage of semi-conductors impacted the production and sales for the quarter,” M&M said in a release.

The Board of Directors of Mahindra Group announce the consolidation of Mahindra Electric Mobility Ltd into Mahindra & Mahindra.

The board also approved a final dividend worth Rs 8.75 per share for the financial year ended March 2021.

The Farm Equipment segment also reported strong performance despite supply chain and commodity challenges. Tractor volumes were up 58 percent and revenue up 60 percent.

The segment’s profit before interest and tax (PBIT) for Q4FY21 registered a growth of 100 percent YoY at Rs 1,095 crore, while PBIT margin increased to 22.0 percent from 17.6 percent.

Dr Anish Shah, MD & CEO, M&M said that the company  had a very strong operating performance in a tough year for both Auto and FES.

“Capital allocation actions and strong operating performance drove results. The company generated Rs 3,457 crore cash in FY21 from working capital actions alone,” Shah said while addressing media.

On Friday, the shares of M&M ended 2.13 percent higher at Rs 846.20 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19: Mahindra announces financial aid, health insurance for its dealer partners

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra and Mahindra (M&M), one of India’s leading automakers, announced on May 13 a series of initiatives including financial aid and health insurance to support its dealer partners during the ongoing COVID-19 pandemic.

While most leading automobile companies have undertaken a series of steps to safeguard their employees and workers, M&M is the first automaker to extend such benefits to permanent employees at its dealerships too.

In a letter to dealer partners, M&M said it will provide a vaccination reimbursement of up to Rs 1, 500 per person for all dealer manpower, applicable till March 2022. Mahindra & Mahindra has about 450 commercial and passenger vehicle dealerships across the country, with more than four times as many touchpoints.

Also read: COVID drive: Bajaj Auto to pay salary of deceased staff for up to 2 years

The Indian multinational automobile major said it will also provide one year of medical insurance of Rs 1 lakh for COVID-19 treatment for the dealer employees, which would include a home quarantine assistance of up to Rs 10,000.

In addition, in case of the demise of an associate due to COVID-19, the automaker major will pay a sum of Rs 2.5 lakh to the deceased employee’s family.

The company said an equal amount shall also be contributed by the dealer to render financial help to the family. The policy will be applicable till August 2021.

Mahindra & Mahindra had earlier announced it was going to bear the cost of inoculation for its employees and their families. The company has close to 80,000 manpower across its PV, CV and tractor dealerships.

Also read: Auto stocks under pressure as Maharashtra imposes new restrictions; automakers seek clarity

Auto dealers in most states are currently not allowed to open showrooms, but some are taking the initiative to vaccinate their employees at this time to ensure a safe return to work once customers walk into showrooms again.

“The move by M&M to reach out to channel partner’s employees is definitely the first from any vehicle manufacturer. It goes far beyond just commercials. It is about humanity,” Nikunj Sanghi, managing director of JS Fourwheels Motors said. Sanghi’s Mahindra dealership is the largest in the Alwar region and directly employs over 300 employees.

Automakers, both domestic and international, have been supporting the fight against COVID-19 in India by way of donations towards relief efforts and providing policy support for employees.

Also read: Demand for cars will decline if COVID-19 threat persists, says Maruti Suzuki

Most manufacturers have been taking prolonged plant shutdowns, including Hero MotoCorp, M&M, and Maruti Suzuki, whereas some like Tata Motors have been scaling down production consistently to keep workers protected while catering to the muted demand in the market.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra & Mahindra shares dip; estimates Q1FY22 sales volume lower by 15-20%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Automobile major Mahindra & Mahindra Ltd said its sales volume for the quarter ended June 2021 is estimated to be lower by 15-20 percent as compared to the year-ago period due to the second wave of the coronavirus pandemic.

The revenue and profitability will also be impacted in line with the fall in volumes. However, the company is taking various cost optimisation measures to limit the adverse impact, M&M said.

“The rampant spread of the second wave of COVID-19 and lockdowns enforced in various states/parts of the country coupled with disruption in the supply of oxygen for industrial use, demand and supply for vehicles and tractors is expected to be impacted temporarily,” M&M said in a regulatory filing on Tuesday.

Further, on the supply side, global shortage of micro-processors (semi-conductors) used in electronic control units (ECUs) fitted in different components/aggregates for vehicles continues to pose challenges to the smooth production schedules, it said.

In view of this, M&M said it is carefully reviewing the demand and supply situation and re-calibrating its operations accordingly while protecting the interest of its customers, dealers and suppliers.

“The endeavor is to ensure optimal level of inventory at plants and dealerships in order to be prepared for a rebound in demand once the situation returns to normalcy,” it added.

Earlier this month, the company had decided to prepone the annual maintenance plant shutdown of its automotive division to May in the wake of the second wave of the coronavirus pandemic across the country. The maintenance of four working days was originally scheduled for June 2021.

M&M said it would advance the scheduled “maintenance of four working days, in each of its automotive division manufacturing plants, to the month of May 2021, in a staggered manner”.

At 10:10 am, the shares of Mahindra & Mahindra were trading 1.42 percent lower at Rs 764.60 apiece on the BSE.

Catch all the latest updates from the stock market here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Auto makers say new restrictions in Maharashtra creating uncertainty

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Auto manufacturers have sought clarity from the Maharashtra government over the latest set of restrictions in the state announced earlier this week. Auto companies have told the government that the restrictions have created uncertainty for the industry.

Mercedes Benz has said that its plant is partially operational and that it will make a decision on its production schedule shortly. Skoda Volkswagen’s Pune facility is partially operational to fulfil export obligations, and the carmaker has requested the government to allow minimum manpower for export manufacturing.

Tata Motors, M&M and VECV too have sought clarifications from the government.

All auto manufacturers are conducting a supply chain review as several suppliers are based in Maharashtra. Component makers in Maharashtra have sought clarity on supplying orders to auto companies in other states.

For live updates on COVID-19 and the ongoing vaccination drive, track our live blog 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M March auto sales at 40,403 units; tractor sales jump to 30,970 units

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra & Mahindra Ltd. (M&M) reported total auto sales for March 2021 at 40,403 vehicles, compared to 6,679 in March lasy year. The sales numbers were higher than CNBC-TV18 poll estimates of 35,500 units.

The company had reported total sales of 28,777 units in February 2021.

The Passenger Vehicles segment (which includes UVs, cars and vans) sold 16,700 vehicles in March 2021 in the domestic market. Sales of commercial vehicles stood at 21,577 units.

Total auto exports stood at 2,126 units.

The growth in March 2021 over March 2020 has been unprecedented and is not comparable given the onset of pandemic during mid-March last year, the company said.

The company’s total Passenger Vehicles sales in FY21 declined 16 percent to 157,216 units from 186,977 units in FY20.

“At Mahindra, we are witnessing very good momentum in demand and have a strong pipeline of bookings across our SUV range of Bolero, Scorpio, XUV300, All-New Thar and also the Bolero Pik-up. In fact, Bolero volumes for March has been the highest in this financial year and despite supply constraints, we have been able to ramp up production of Bolero Pik-up significantly during the month,” said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.

The supply challenges s expected to remain for the next two to three months and then ease out gradually, he added.

M&M’s Farm Equipment Sector (FES), reported total tractor sales during March 2021 at 30,970 units, as against 13,613 units for the same period last year.

Domestic sales in March 2021 were at 29,817 units, as against 13,418 units during March 2020. Exports for the month stood at 1,153 units.

“We have sold 29,817 tractors in the domestic market during March 2021 with a growth of 122% over last year. Impact of lower base coupled with continued positive sentiments driven by healthy reservoir levels, higher MSP and increased liquidity, have led to strong wholesale growth in March,” said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd.

Tractor demand is expected to remain strong as Rabi harvesting is progressing well along with the onset of sowing of summer crops in select markets, he added.

At 12:55 pm, the shares of M&M were trading 0.92 percent lower at Rs 787.80 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow