NEW DELHI (Reuters) - Mahindra & Mahindra Ltd
Net profit fell 6 percent to 8.82 billion rupees ($143.67 million) in the quarter ended June from 9.38 billion rupees a year earlier, the company said on Friday. Analysts on average expected net profit of 8.36 billion rupees, according to Thomson Reuters I/B/E/S.
The need to push sales comes as the company grapples with growing competition from carmakers like Ford Motor Co
A delay in monsoon rains also dented rural demand for tractors. Tractor sales grew a marginal 1 percent.
"If the south west monsoon continues to be weak, it would impact both inflation and consumer demand negatively in the near term. Our outlook on the economy in the short term remains cautious at this point of time," Mahindra said on Friday.
The world's largest tractor maker by volume benefited from strong rains last year that helped boost rural incomes. India still relies on monsoon rains to irrigate more than half of its farmland.
Mahindra's overall sales rose about 2 percent to 100.96 billion rupees in the quarter compared with a year earlier.
After two consecutive years of decline, sales of passenger cars in India are expected to grow between 5 to 10 percent this fiscal year that started on April 1, an industry body said, as the new Narendra Modi-led government works to kickstart the economy and boost consumer confidence.
(1 US dollar = 61.3900 rupee)
(Reporting by Aditi Shah; Editing by Ryan Woo)
