M&M shares dip after company faces supply chain challenges

Mahindra and Mahindra Limited's shares on Monday fell as much as 1.63 per cent to hit an intra-day low of Rs 1,698 after the Mumbai-based automaker said it continues to face some supply chain challenges on select parts.

Veejay Nakra, President, Automotive Division, M&M Ltd, said, "We continued to face some supply challenges on select parts. We are working closely with our suppliers to mitigate these challenges going forward”.

The auto major’s total auto sales in December 2023 stood at 60,188 vehicles, a growth of 6 per cent annually, including exports, as per an exchange filing.

In the Utility Vehicles segment, Mahindra sold 35,171 vehicles in the domestic market, a growth of 24 per cent and overall, 36,349 vehicles, including exports, while the domestic sales for commercial vehicles stood at 17,888.

Furthermore, Mahindra’s domestic tractor came in at 18,028 units, as against 21,640 units during the same period in the preceding year.

The total tractor sales inclusive of domestic and exports during December 2023 stood at 19,138 units, as compared to 23,243 units for the corresponding period last year, while the exports for the same period stood at 1,110 units.

Hemant Sikka, President for farm equipment sector at Mahindra & Mahindra Ltd, said, “Retail momentum slowed down on account of tapering of agricultural activities, which is the norm in the month of December. Announcement of higher horticulture production and continued government support to the agriculture sector are expected to support tractor demand."

As of 11:37 am, the shares of Mahindra and Mahindra Ltd were trading 1.28 per cent lower at Rs 1,704.10.