Mahindra set for biggest drop in decade as earnings disappoint

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NEW DELHI: Mahindra & Mahindra Ltd shares headed for their steepest decline in more than a decade after the Indian automaker reported a surprise drop in its December-quarter earnings.The stock tumbled 7.2% to 528.2 rupees at 3:21pm in Mumbai, set for the steepest fall since August 2009.

The Mahindra & Mahindra Ltd. Funster electric vehicle sits on display at the Auto Expo 2020 in Noida, Uttar Pradesh, India. Mahindra & Mahindra Ltd shares headed for their steepest decline in more than a decade after the Indian automaker reported a surprise drop in its December-quarter earnings as stock tumbled 7.2% to 528.2 rupees. - Bloomberg

The stock tumbled 7.2% to 528.2 rupees at 3:21pm in Mumbai, set for the steepest fall since August 2009, and the worst performance on the 16-member gauge of automakers. Other companies on the index -- Motherson Sumi Systems Ltd. and Eicher Motors Ltd. -- slumped by more than 3%. A widespread slump in consumer demand in an economy that is set to grow at the slowest pace in a decade has hit sales of vehicles. Total car sales for the industry in January were 8% lower from a year ago, an industry body said Monday, extending the slide seen in 2019.

 

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