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M&M gung-ho on road ahead despite rising inputs
Mahindra & Mahindra is gung-ho about the recent upsurge in the investment environment, and says industrial activity in India is seeing an encouraging rebound. But while the overall outlook may be robust, there are some niggling worries, reports Swati Khandelwal Jain.
Mahindra & Mahindra is gung-ho about the recent upsurge in the investment environment, and says industrial activity in India is seeing an encouraging rebound. But while the overall outlook may be robust, there are some niggling worries, reports Swati Khandelwal Jain.
Automobile major M&M has been on top gear through the first half of the financial year, and it expects some of this momentum to continue in the coming quarters. However, it warns that while volumes will remain robust, commodity prices will play a huge role in determining the company's fortunes.
Uday Phadke, President - Financial and Legal Services, M&M, says, "We saw a good Q2 as our materail cost as a percentage of sales showed a 600 bps reduction. Commodity prices are showing firmness. How much will it be, will be important to watch out."
M&M also says growth in its tractor business may not be as strong in the coming quarters, as it was in the first half of the year. However, this will not detract from new launches it has planned across segments. M&M is expected to launch a 25-tonne truck in the next two weeks, and its motorcycle should ride out in a couple of months.
The company is also geared up to drive into the US by the year-end, a move that will signify its major entry into the American markets.
