Mahindra & Mahindra (M&M) share price jumped 3 percent intraday on July 2, a day after the company came out with its sales figures for June that showed an uptick in tractor demand.
The stock, which has surged over 89 percent in the last three months, trading at Rs 517, up Rs 17.45, or 3.49 percent, at 1011 hours. It has touched an intraday high of Rs 517.45 and an intraday low of Rs 505.55.
Mahindra & Mahindra on July 1 reported a 10 percent growth in total tractor sales at 36,544 units in June. The company sold 33,094 tractors in the same month of 2019. Domestic tractor sales grew 12 percent to 35,844 units as compared to 31,879 units in June 2019, Mahindra & Mahindra said in a statement.
"We have sold 35,844 tractors in the domestic market during June 2020, a growth of 12 percent over last year. This is our second highest June sales ever," said Hemant Sikka, President, Farm Equipment Sector, M&M.
Sikka said the timely arrival of the south west monsoon, combined benefits of a record rabi harvest, government support for agri initiatives and good progress in the sowing of the kharif crop led to positive sentiments.
"These underlying factors along with better cash flows in rural markets have helped boost tractor demand during June. It is expected that this demand will continue to remain buoyant in the coming months," he said.
Mahindra and Mahindra on June 12 posted a loss of Rs 3,255 crore in the quarter ended March 2020 due to the write-down of investment in Ssangyong and other international subsidiaries. Profit in the year-ago quarter was Rs 969.2 crore.
The profit before one-time loss stood at Rs 890 crore for the March quarter against profit of Rs 1,515 crore in the same period last year, said the automobile company in its BSE filing.
Revenue from operations declined 34.8 percent year-on-year, which was ahead of Street estimates, to Rs 9,005 crore in Q4 FY20.