Mahindra & Mahindra Ltd expects supply disruptions in the Automotive Sector due to shortage of micro-processors

The operations of Mahindra & Mahindra Ltd in the Automotive Sector will be affected by the global supply shortage of micro-processors (semiconductors) used in Electronic Control Unit (ECUs) which is supplied by Bosch Limited. This is estimated to result in reduction in production / sales volume of the Company (Automotive Division) and Mahindra Vehicle Manufacturers Limited, a wholly owned subsidiary of the Company ("MVML") in the last quarter of FY 2020-2021.

The Company is engaging closely with Bosch Limited and assessing likely production loss for the last quarter of FY 2020-2021 on account of this supply disruption as also steps to be taken to minimize the impact of the same. However, estimation of exact likely reduction in production / sales volume of the Company (Automotive Division) and MVML for the last quarter is not ascertainable at this stage.

There will be no material impact of the above event on production / sales volume of the Company (Automotive Division) and MVML for the month of December 2020. The Company's tractor operations and 3-wheeler production is unaffected with the above disruption.

Shares of MAHINDRA & MAHINDRA LTD. was last trading in BSE at Rs.753 as compared to the previous close of Rs. 753.95. The total number of shares traded during the day was 86937 in over 1888 trades.

The stock hit an intraday high of Rs. 762.8 and intraday low of 750.5. The net turnover during the day was Rs. 65783104.

Source : Equity Bulls

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