M&M shares slip 2% as company stares at production cut due to chip shortage

Shares of on Thursday slipped over 2 per cent after the company said its production will be cut by up to 25 per cent due to shortage.

The stock declined 2.29 per cent to close at Rs 752.50 on BSE. During the day, it dipped 2.60 per cent to Rs 750.10.

It was the biggest drag among the BSE 30-share frontline companies list.

At NSE, it went lower by 2.26 per cent to close at Rs 752.45.

In a regulatory filing, the company said its automotive division continues to face a supply shortage of semiconductors, which further accentuated due to COVID-19 lockdowns in some parts of the world.

“Consequently, the company will be observing ‘No Production Days’ of around 7 days in its automotive division plants in the month of September 2021,” it added.

The move is estimated to result in a “reduction in production volumes of the automotive division in September 2021, by 20-25 per cent”, it said.

In August, the company sold 15,973 units of passenger vehicles in the domestic market, as against 13,651 units in the same month last year, registering a growth of 17 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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