M&M surges on opening automotive assembly plant in Sri Lanka

Leading auto manufacturer Mahindra & Mahindra has expanded its global footprint with the inauguration of a local automotive assembly plant at Welipenna, near Colombo, Sri Lanka.

With this local assembly unit, the company will now be able to deliver products in reduced time and at more affordable prices. The assembly plant rolled out its first product, the compact SUV, KUV100 and will roll out a slew of products over the next 3 years.

In the recent quarter Q1FY20, the company’s revenue came in at Rs. 26,041.02 crore as against Rs. 26,061.51 crore in the corresponding quarter last year, registering 0.1 per cent YoY decline. EBITDA for the quarter fell by 13.1 per cent YoY to Rs. 3,435.19 crore as against Rs. 3,952.33 crore in the corresponding quarter last year, with a corresponding margin contraction of 197 bps. EBITDA margin for the quarter stood at 13.2 per cent. PAT for the quarter came in at Rs. 894.11 crore as against Rs. 1,884.66 crore in the corresponding quarter last year, a decline of 52.6 per cent YoY.

On Monday, the stock of Mahindra & Mahindra opened at Rs. 528 per share and made an intraday high of Rs. 531.40 on the BSE. At 10:32 hours, the stock was trading at nearly Rs. 530.45 on the BSE.