M&M shares slip on profit-booking even as production, sales zoom in June

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July 12, 2023
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M&M is also exploring options to pare around 2-3 percent stake in its electric vehicles business, the company’s managing director and CEO, Anish Shah told CNBC-TV18 in a recent interview

Shares of Mahindra & Mahindra slipped around 2 percent in early trade on July 12 as profit-booking slipped into the counter after recent gains. The stock zoomed nearly 6 percent in the past week, which gave investors more room to book partial profits.

At 9.44am, shares of M&M were trading at Rs 1,556.85 on the National Stock Exchange, down nearly 1 percent from the previous close.

The carmaker also reported a 19.1 on-year rise in production to 64,063 units in June. Not just production, but total vehicle sales also grew 16.7 percent in June to 59,924 units from 51,319 units sold a year back.

Passenger vehicle sales jumped 26 percent to 38,965 units in June from 30,888 units last year. Utility vehicle sales increased to 32,585 units from 26,620 units in this period.

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Exports as well as commercial vehicle sales remained weak. While commercial vehicle sales declined 2.5 percent on-year, exports registered a 9.7 percent drop.

M&M is also exploring options to pare around 2-3 percent stake in its electric vehicles business, the company’s managing director and CEO, Anish Shah told CNBC-TV18 in a recent interview.

Also Read: M&M looking to offload up to 3% stake in EV business, says CEO Anish Shah

News reports had suggested that the automobile company was in advanced discussions with British International Investment (BII) and some other global investors to raise up to Rs 5,000 crore ($605 million) for its electric vehicles (EV) unit. If talks with BII sail through, it will make way for a second-round of investments from the British financier into M&M’s EV unit.

In July 2022, BII signed a pact with Mahindra Electric to pump in Rs 1,925 crore ($250 million) through compulsory convertible preference shares.

The automaker eyes to roll out five new EV models between April and October 2025 and has also earmarked a capital expenditure of around Rs 10,000 crore to set-up a manufacturing facility for electric three-four wheelers in Telangana between FY22 and FY27.