Tag: M&M

M&M calls layoff reports ‘baseless’ and ‘speculative’; says let go 48 associates due to redundancies

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

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Reacting to several news reports on Wednesday about the company laying off around 300 employees in its automotive and farm equipment sectors, Mahindra and Mahindra Limited (M&M) on Thursday clarified that the concerned “articles are baseless and purely speculative”.

Presenting the “facts” in a release, the company said they had “let go 48 associates” over the past 12 months “due to redundancies”. “In addition, 98 associates have been given six months to find a role. The combined total (across all levels) is 1.3 per cent of white-collar associates within the auto and farm sectors,” it said in a release, a copy of which is with CNBC-TV18.

“As a policy, the company does not comment on media speculation or rumours. However, we are very concerned about this misreporting, as we truly value our employees and have taken numerous steps to ensure their safety, health and financial well-being,” the company said in a release before presenting the “facts” in it.

On reports that there is a clear indication that the firing spree will spread to Mahindra Research Valley, it clarified that “there are no such plans”. “In fact, we continue to recruit talent… as we ramp up our EV (electric vehicle) strategy.”

On reports that there has been no salary revision, M&M said it increased pays across the board.

Refuting the reasons for layoffs being its poor performance, the company said “M&M has reported strong financial results in Q3. “Consolidated Q3 PAT (profit after tax) before exceptional items was up 305 per cent versus the prior year. M&M stock price is up 200 per cent since April 1, compared to 73 per cent for Sensex,” it said.

M&M added that not a single blue-collar worker has been laid off to date. It also highlighted the steps taken during the pandemic for the safety and well-being of its associates like establishing quarantine centres, picking up the cost of all medical treatments, providing a monetary allowance for connectivity from home and so on.

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

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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

BEML shares jump over 15% on reports Tata Motors, M&M, others eyeing stake

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

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The share price of BEML surged over 15 percent on Monday to hit a 52-week high on media reports that at least 6 companies are looking to buy a stake in the defence equipment maker.

Companies including Tata Motors, Mahindra and Mahindra and Ashok Leyland are looking to buy a 26 percent stake in the state-run company, Mint reported. It added that Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for the government’s stake in BEML.

The stock rose as much as 15.4 percent to hit its 52-week high of Rs 1,353.35 per share on the BSE.

The report noted that these companies are looking to seek control of BEML as part of their strategy to grow their defence manufacturing businesses and cut dependence on the core commercial vehicle business, which is cyclical in nature.

The government currently holds a 54 percent stake in BEML and had invited expressions of interest for the strategic sale of 26 percent of the equity stake in the firm on January 4. The centre will also transfer management control to the buyer.

The Department of Investment and Public Asset Management (DIPAM) initially set March 1 as the deadline for submission of interest but later extended it to March 22.

SBI Capital Markets Ltd is advising the government on the sale process.

The stake sales in BEML will help bolster the government’s efforts to raise funds via asset sales for the next fiscal year.

The government hopes to generate Rs 1.75 lakh crore from disinvestment receipts in the coming fiscal.

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 February auto sales fall 11% but tractor sales up 25%

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

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Auto major Mahindra & Mahindra’s (M&M) total auto sales for the month of February 2021 fell 11.3 percent to 28,777 vehicles as compared to 32,476 vehicles in February 2020.

In the Utility Vehicles segment, Mahindra sold 15,380 vehicles during the month, compared to 10,675 vehicles in February 2020, registering a growth of 44 percent. The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 15,391 vehicles, a growth of 41 percent over the same period last year.

“Demand continues to remain buoyant for our range of SUVs and Pick-ups and we have a robust order pipeline,” said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.

However, the problems oversupply of semiconductors is likely to continue for another 3 to 4 months, Nakra added.

“Going forward, we will continue to monitor the situation and closely work with our suppliers to minimise this supply risk,” he said.

Exports for the month of February 2021 were at 1,827 vehicles.

Mahindra & Mahindra’s total tractor sales during the month registered a growth of 25 percent to 28,146 units, as against 22,561 units, YoY.

Domestic tractor sales rose 24 percent to 27,170 units from 21,877 units, while exports grew 43 percent to 976 units from 684 units, YoY.

“Tractor demand continues to be robust with Rabi sowing at an all-time high, supported by healthy reservoir levels and higher liquidity with farmers, on account of timely and robust procurement of Kharif crops,” Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra said.

The outlook for the industry continues to be positive given the all-time high estimates of Rabi production and strong rural cash flows, he added.

At 1:20 pm, the shares of Mahindra & Mahindra were trading 2.50 percent higher at Rs 825.00 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

M&M shares surge 10% as Q3 earnings beat estimates

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

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The share price of automobile major Mahindra & Mahindra (M&M) surged 10 percent to a fresh high of Rs 952.15 apiece in early trade on Monday, extending previous session’s gains after the company reported strong December quarter earnings.

M&M, including Mahindra Vehicle Manufacturers, on February 5 reported 39.6 percent YoY growth in net profit at Rs 530 crore for the third quarter of fiscal 2021. The company had an exceptional loss of Rs 1,213.98 crore during the quarter due to impairment provisions for certain long-term assets and other exposures. The profit before exceptional loss stood at Rs 1,745 crore for the quarter.

Revenue from operations in Q3FY21 rose 16 percent to Rs 14,056.5 crore. M&M’s earnings were better than CNBC-TV18 analysts’ poll estimates.

During the quarter ended December 2020, M&M’s tractor sales in the domestic market rose 20 percent to 97,420 units, but automotive business sales declined 7 percent to 1,15,272 vehicles.

Growth momentum for the tractor industry was supported by positive sentiment in rural parts of the country, specifically the agri economy, M&M said.

For auto, with many key indicators showing positive momentum, the calendar year 2021 has started with strong momentum. However, some significant challenges do exist especially on the supply side and commodity prices, it said.

Here’s what brokerages have to say on M&M’s Q3 earnings:

CLSA

“M&M’s 3QFY21 core results beat both our and consensus expectations due to better-than-expected margins in the farm segment. Management also provided an update on the major loss-making subsidiaries and has guided for FY22 losses at Rs 3 billion versus Rs 34 billion in FY20,” CLSA said.

CLSA maintained BUY rating on M&M and increased its FY21-23 core business EPS by 2-5 percent and raised the 12-month target price to Rs 1,135 per share from Rs 1,010 earlier.

Goldman Sachs

Goldman Sachs maintained a Buy call on the stock with a target of Rs 1,029 per share and said that M&M’s Q3 earnings were above estimates. It is of the view that the auto segment is geared for recovery and said that earnings beat continued on the consolidated front as well.

“M&M remains our preferred pick in the passenger vehicle and commercial vehicle space,” Goldman Sachs said.

Nomura

Nomura has retained a Buy rating on the stock with a target of Rs 1,165 per share. It believes that the company is executing well on all fronts. The success of new SUV, LCV share gains and efficient capital allocation is likely to drive re-rating.

The brokerage firm has raised EPS estimates by 14 percent/ 2 percent/ 8 percent for FY21/FY22/FY23.

ICICI Securities

“The performance reinforces our belief in the resilience of M&M earnings even in wake of rising input costs thanks to high Farm Equipment Segment (FES) contribution to EBIT,” ICICI Securities said.

ICICI Securities maintained Buy rating and raised the target price to Rs 1,045 per share from Rs 836 earlier.

At 10 am, the shares of M&M were trading 7.50 percent higher at Rs 930.55 apiece on the BSE as compared to a 1.17 percent gain in the benchmark Sensex.

Catch all the latest updates from the stock market here.

(Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)

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

Here are key stocks that moved the most on February 4

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

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The Indian indices ended at a record close for the third straight session, extending gains since the budget session. The gains were mainly led by FMCG, metal, and banking stocks. The Sensex ended 358 points higher at its record close of 50,614 while the Nifty rose 106 points to end at its closing high of 14,895.

The Nifty Bank also closed at record high levels, breaching 35,000-mark for the first time ever. Meanwhile, Nifty FMCG rose 2.5 percent and Nifty Metal was up 2 percent each. Nifty Auto and Nifty Fin Services indices also added over a percent each. PSU Bank stocks surged on the government’s recapitalisation plan with the Nifty PSU Bank up nearly 6 percent.

Here are the key stocks that moved today:

SBI: Shares of SBI rose 6.5 percent after the lender announced its third-quarter earnings. The country’s largest lender, reported a net profit of Rs 5,196.2 crore in the third quarter of fiscal 2021, down 6.9 percent from Rs 5,583.4 crore in the year-ago period. Net interest income (NII) in Q3FY21 rose 3.7 percent to Rs 28,820 crore from Rs 27,779 crore, YoY, in line with the poll estimates. The domestic net interest margin was flat on a sequential basis at 3.34 percent.

Future Group stocks: Shares of Future Group companies plunged on Thursday after capital market regulator Securities and Exchange Board of India (SEBI) barred CEO Kishore Biyani from accessing the securities market for a year for indulging in insider trading in the shares of the company. Apart from Kishore Biyani, who was the CMD and promoter of Future Retail Ltd (FRL), others facing the ban are Future Corporate Resources Pvt Ltd, Anil Biyani and FCRL Employee Welfare Trust. The stock price of Future Enterprises, Future Retail, Future Lifestyle Fashions, Future Supply Chain Solutions and Future Consumer were down 4-5 percent during the day.

M&M: Shares of Mahindra & Mahindra, rose 4 percent, extending gains for the fourth day after Morgan Stanley listed the automaker as one of its top picks in the auto sector, raising its target price by over 28 percent. Maintaining its ‘overweight’ stance on the stock, Morgan Stanley upgraded the target price on M&M shares from Rs 865 to Rs 1,112 apiece. The global brokerage believes the earnings upgrade cycle, ROE focus, and macro tailwind will drive the next leg in trade.

Jubilant FoodWorks: The share price of Jubilant FoodWorks rose 7 percent after the firm reported a 22 percent jump in its December quarter net profit at Rs 124.1 crore. The company posted a profit of Rs 101.8 crore in the same quarter last fiscal. Earnings before interest, tax, depreciation and amortization (EBITDA) for the firm were also up 10 percent at Rs 280 crore while the margin rose to 26.2 percent.

Apollo Tyres: Shares of Apollo Tyres rallied 7 percent after the firm’s profit zoomed over two-fold to Rs 443.8 crore in the December quarter. The company had posted a profit of Rs 173.9 crore in the year-ago quarter and was in a loss in the October quarter. The rise in profit was on the back of a massive jump in operational performance.

Prince Pipes: Shares of Prince Pipes and Fittings was locked in its 20 percent upper circuit after the company reported a robust set of numbers in the December quarter (Q3FY21). The firm’s net profit rose 175 percent year-on-year (YoY) to Rs 67 crore in the third quarter of FY21 on the back of higher revenues. The company had posted a profit of Rs 24 crore in the year-ago quarter.

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 launches XUV300 with new petrol automatic transmission

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

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Automaker Mahindra & Mahindra (M&M) on Tuesday said it has launched compact SUV XUV 300 with automatic transmission. The company has introduced Petrol AutoSHIFT, its auto transmission technology, on the top variant of the model, the Mumbai-based automaker said in a statement.

The trim will also come equipped with the all-new BlueSense Plus connected technology, it added. M&M further said the electric sunroof on the model will now be offered from mid variant onwards on both manual and automatic versions.

“Today, we launch our innovative auto transmission AutoSHIFT on petrol, which uses advanced technology to offer an effortless drive in city drive as well as on the highways. “We also introduce today the BlueSense Plus, our connected SUV technology with 40 plus features, that will seamlessly integrate the XUV300 into the always-connected world of today’s consumer,” M&M Automotive Division CEO Veejay Nakra said. Bookings for the all-new petrol AutoSHIFT are now open and deliveries will begin from mid-February onwards, the automaker noted.

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 cuts over half of North American workforce, says report

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

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Mahindra & Mahindra (M&M) Ltd has cut over half of the workforce at its Auburn Hills-based North American unit due to delayed projects amid the COVID-19 pandemic and a legal tussle, Reuters reported, citing sources familiar with the matter.

Though figures were not available for the number of jobs lost, one of the sources said that “hundreds of workers” were laid off since mid-2020, as part of the restructuring. The source also added that the lay-offs included two-thirds of Mahindra Automotive North America’s (MANA) staffing.

According to the M&M website, the unit had over 500 employees in early 2020. Among those who lost their jobs were engineers, staff at the unit in Detroit and sales executives.

M&M, India’s largest SUV manufacturer, has had a long-time desire to enter the lucrative US market.

Commenting on the lay-offs, MANA said in a statement that it had to take the step due to COVID-19 and an International Trade Commission lawsuit which led to an August “cease and desist” order for the Roxor business.

The lay-offs come as Mahindra started reviewing its business last year to conserve cash and continue operations that make money or can be profitable. As part of the review, the company has pulled the plug on its US electric scooter business GenZe. It is also in talks to sell its stake in South Korean automaker Ssangyong Motor, and called off a joint venture with Ford Motor Co.

Since it announced the review in June last year, the company’s shares have surged over 60 percent. They are now valued at over $12.6 billion.

Mahindra has been in a protracted legal battle over an intellectual property infringement case with Fiat Chrysler Automobiles (FCA). This has prevented Mahindra from selling Roxor in the US. However, in December, a favourable ruling ensured that Mahindra can begin selling Roxor again.

Now, the company wants to concentrate on manufacturing large SUVs and electric vehicles for the Indian market, where it faces competition from Tata Motors and Kia Motors.

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