In its bid to arrest falling operating profit margins, Mahindra and Mahindra (M&M) intends to reduce costs further, VS Parthasarthy, group CFO, told a business news channel recently. M&M reported an operating profit margin of 12.4% for the September quarter, down 150 bps year-on-year. The Ebitda for the quarter stood at Rs 1,605 crore, down 7% .

Mahindra & Mahindra on Friday said it will increase price of its newly launched multi-purpose vehicle (MPV) Marazzo by Rs 30,000 to Rs 40,000 from January 1, 2019.

The Marazzo was launched in September with introductory prices starting at Rs 9,99,000 and going up to Rs 1.39 million, depending on variants.

Shares of Mahindra and Mahindra Ltd lost 2.3% on the National Stock Exchange after it reported weaker-than-expected numbers for the September quarter (Q2) on Wednesday. Revenue growth was a tepid 6.6%, reflecting muted volumes. But what caught the Street off guard is a sizeable reduction in profitability of the automobile segment.

Margins from automobiles dropped 2.7 percentage points from a year ago. The rise in raw material costs, introductory pricing for the new vehicle and higher promotional expenses were the reasons.

When Devendra Kohli, general manager (operations) at LTC Logistics, had to purchase trucks for his company three years ago, he tried a relatively new brand, the Blazo, the heavy-duty truck of Mahindra Trucks and Buses (MTB).

But the decision wasn’t an easy one. Unlike models from Tata Motors and Ashok Leyland, it didn’t have a long-running history to depend upon.

MUMBAI: Mahindra & Mahindra expects automobile sales to revive in the upcoming festival season as consumption demand in Asia’s third-biggest economy remains strong, paced by broader growth and increasing aspirations.

“…Demand and consumption are good stories for the country and there is no reason to have that derailed. A little inflation is like good cholesterol,” VS Parthasarathy, group CFO at Mahindra & Mahindra, said on Wednesday.

Mumbai: In a major setback for utility vehicle (UV) maker Mahindra and Mahindra Ltd (M&M), a US district court in Michigan denied the company’s motion for a preliminary injunction that would have prevented Fiat Chrysler Automobiles (FCA) US LLC from bringing a complaint against it in the US’s International Trade Commission (USITC).

Mahindra and Mahindra (M&M) managing director Pawan Goenka on Wednesday said tractor sales may be subdued during the July-September quarter because of floods in Kerala and several other parts of the country as well as a delayed start to the festival season which perks up buying.

However, Goenka added that sales are expected to pick up during the October-December quarter.

Nashik: Mahindra and Mahindra Ltd is exploring the feasibility of entering emerging markets such as Indonesia and Russia in partnership with Ford Motor Co. “We are exploring various aspects with Ford; manufacturing, sourcing, engineering or even on the retail front. But things are at a very initial stage (in these markets) to conclude what aspect we will be partnering on,” said Mahindra managing director Pawan Goenka.

New Delhi: Auto major Mahindra & Mahindra reported Saturday 14 per cent increase in total sales at 48,324 units in August.

The company had sold 42,207 units in the same month last year, M&M said in a statement. In the domestic market, sales were at 45,373 units last month, up 15 per cent, as compared to 39,615 units in August 2017.

Q1FY19 PAT was Rs 2.7 bn. Earnings growth was led by strong AUM growth, expansion in reported spreads and improvement in cost-to-income ratio. Asset quality improved as gross stage-3 ratio declined 510bps y-o-y.

Disbursement growth was also strong during the quarter, driven by high disbursement in the CV, pre-owned vehicle and tractor segments. We consider the stock attractive at 3.1x FY20E P/Adj B and maintain our ‘buy’ rating.

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