Mahindra & Mahindra, India’s largest tractor maker shares are expected to have limited upside on moderating volume growth over the last four months and forecasts of below normal monsoon showers.
During the January-March quarter of FY19, Mahindra’s tractor volumes fell 14 percent to 60,878 units, while for the industry the dip was 5.8 percent. This led to the company’s market share in the tractor segment falling to 35.8 percent in the March quarter from 40.53 percent in the previous quarter.
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This shrunk revenues from the tractor segment to 23 percent in the March quarter from 36 percent in the previous quarter. In FY19, the company’s tractor volumes grew at 4 percent, as against an average of 22 percent during the previous two fiscals. Mahindra projects volume growth of 5 percent in FY20, the company told analysts after the March quarter results.