Mahindra & Mahindra, India’s biggest maker of sport-utility vehicles and tractors, today posted a 22 percent increase of its second-quarter net profit.
The parent company of SsangYong was helped by strong demand for its utility vehicles. From July through September, Mahindra & Mahindra posted a net profit of 9.02 billion rupees ($168.38 million), compared with 7.37 billion rupees in the same quarter last year. The company’s sales also rose 33 percent to 96.59 billion rupees, up from 72.44 billion rupees.
Mahindra’s second-quarted net profit exceeded market expectations. According to a poll of 18 analysts compiled by Wall Street Journal, the company was expected to post a net profit of 8.22 billion rupees on sales of 93.55 billion rupees.
Sales of Mahindra utility vehicles rose 32 percent from a year earlier to 62,751 units in the past quarter. The company’s continued strong sales of SUVs more than compensated for a slide in tractor sales.
In the quarter ending September 30, Mahindra sold 47,065 tractors in the domestic market as compared to 54,585 tractors in Q2 last year, with a domestic market share of 40.3%. The company exported 3043 tractors in the same period.