Mahindra hikes prices of tractors by 2 pc
Mahindra hikes prices of tractors by 2 pc
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A vertical rise in the prices of steel forced Mahindra and Mahindra Ltd to raise prices of tractors by 2 percent from Friday, Hemant Sikka, the president of Farm Equipment Sector at the company told. The tractor maker is likely to hike prices again in three-six months to mitigate the impact of the rise in steel prices on the margins of the company, Sikka said, adding that the rise in commodity prices was "concerning".

Sikka said that the company was relying on cost-efficiency measures to improve margins. While he did not give an absolute figure, he expects margins to marginally top the average of 17-19 percent going ahead. M&M has also ramped up production to over 22,000 tractors a month as against its earlier highs of 20,000-21,000 tractors. Talking about volume growth, Sikka said that he expects double-digit growth in 2020-21 (Apr-Mar), compared with a likely 15 percent year on year growth in the industry.

Till December, the company reported a 7.5 percent volume growth, with a 60 percent surge in export of its tractors last month. Sikka said that M&M plans to manufacture tractors at the peak capacity to get some stock in the pipeline. Talking about market share, Sikka said the company's current market share was around 38.7 percent, which he expects will increase in six months. Shares of M&M  last closed 2,26 percent at 749 per share on the National Stock Exchange.

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