Mahindra & Mahindra, sold 40,274 units in domestic market in October 2014 with a de growth of 15.7%. The export units stood at 2,502 units during October 2014. Total sales stood at 42,776 units in October 2014 with de growth of 15.4%%.
Only Mahindra Trucks & Bus has positive growth of 5.6% in October 2014.Mahindra sales is struggling during Oct FY 2015. Even during the festive season Passenger segment has registered negative growth. Commercial Segment has started to perform better with positive growth.
– Company with a more than 52% market share maintains leadership position in Multi Untility segment
– The New Generation Scorpio has launched with big branding budget. It was excellent add campaign by Mahindra. New Scorpio booked more than 10,000 units. The XUV performance also tremendous in SUV segment with booking of around 3000 pm.
– Mahindra is the market leader in 2-3.5T pick-up segment with market share of 72.4%. On the other hand, the Industry has decline by 6.4%, M&M registered growth of 15.3% during July- Sept 2014
– Mahindra's Chakan Phase II – the likely investment for for its extension is around Rs.4000cr over a period of 7 years to create additional capacity of 400,000 units as per Mahindra sales plan.
– There is no discount on Scorpio but other Mahindra's other are having discounts offer in different bracket.
– Average 1% price has increased during the first half due to increase in sales cost. In Exports, there is growth of 6% during H1FY15 however it has been affected in Chile and South Africa market.
Tractor Sales Overview:
Sales of Tractor segment registered growth of 17% de growth at 31,907 units for FY 2014-15 as against 38,263 units during FY 2013-14.
Total Sales of Tractor segment registered growth of 17% de growth at 31,907 units for FY 2014-15 as against 38,263 units during FY 2013-14.
Total Sales of Tractor segment registered growth of 3% de growth at 167,614 units for FY 2014-15 as against 172,104 units during FY 2013-14.
Excellent growth in export. Mahindra Tractor is market leader in Domestic market.
– In Q2FY15, the company’s growth in tractor segment was around 0.30%;
– Mahindra's market share for H1 FY15 was 41.50%, a minor growth of 0.50% YoY.
– Intially a negative aspect about mansoon and delayed monsoon in few areas of the country, crop damage was also left negative impact on its tractor sales due to cyclones.
– New product Arjun Novo launched which is well accepted by market.
– In Tractor segment also 1.2% price has been increased in H1FY15.
– Excellent growth in export of 84% during Q2FY15 and by 21% in H1FY15, Specially Sourh East Asea countries and US.
Q2 FY 2015 Financial Performance of M &M and MVML:
– Profit after tax is Rs. 974 crores as against Rs. 957 crores (Incl. MTBL) in the corresponding period last year.
– Company awarded AAA credit rating by all major 4 Indian Rating Agencies
– Cash & cash equivalent of Rs. 3700 crores
– Net Total income is up by 5.6% (from operations)
– EBITDA Margin is at 12.0% against 13.5% YoY. Company said in its statement that the lower EBITDA is due to change in Revenue/Product mix, higher customer acquisition cost and cost invloved to new product launches.
Source: ACG, Mahimhdra & Mahindra