New Delhi, Jun 12 (PTI) Shares of Mahindra & Mahindra (M&M) on Friday jumped over 7 per cent after the company said that with the easing of lockdown restrictions, there will be a ramp-up in production, supply chain and distribution from June onwards, which will aid economic activity.
On the BSE, it advanced 7.22 per cent to close at Rs 508.70. During the day, it rose by 8 per cent to Rs 512.50.
It jumped 7.56 per cent to close at Rs 510.45 on the National Stock Exchange.
In terms of traded volume, 5.90 lakh shares were traded at the BSE and 1.83 crore shares were traded at the NSE during the day.
M&M was the top gainer in the Sensex and Nifty pack.
Mahindra & Mahindra (M&M) on Friday reported a consolidated net loss of Rs 3,255.02 crore for the quarter ended on March 31, 2020.
The company, along with Mahindra Vehicle Manufacturers Ltd (MVML), had posted a net profit of Rs 969.25 crore for the January-March period of 2018-19.
Its revenue from operations declined to Rs 9,004.72 crore during the fourth quarter, compared with Rs 13,807.88 crore in the corresponding period of the previous financial year, M&M said in a regulatory filing.
The company said it sold 86,351 vehicles in the fourth quarter, down 47 per cent from 1,63,937 units sales in the fourth quarter of 2018-19.
“The results were affected due to the lower industry volumes in both automotive and tractor segments, transition to BS-VI and the abrupt lockdown due to the COVID-19 situation,” M&M said.
On the outlook, the company said that with easing of restrictions, there will be a ramp-up in production, supply chain and distribution from June onwards, which will aid economic activity.
While the overall services and manufacturing sectors are likely to see a slower recovery, the agriculture/farm equipment sector will be relatively less impacted, aided by several positive factors such as record Rabi production, higher government procurement, timely announcement of higher minimum support prices (MSPs) and outlook of a normal monsoon, it added.
“One can expect a quicker recovery in rural India, as is evident from tractor sales of the company in the month of May. The urban segment may take longer to come back to normalcy,” M&M said.
The company’s board, which met on Friday, recommended a dividend of Rs 2.35 (47 per cent) per share of a face value Rs 5 each for the financial year 2019-20.