 "Mahindra")
Indian automaker Mahindra & Mahindra, posted a smaller-than-expected rise in third-quarter profit on Wednesday as weak demand for its profit-boosting tractors offset outweighed sport utility vehicle (SUV) sales.
The 'Scorpio' SUV-maker's standalone profit after tax rose 60.6 per cent to Rs 2,454 cr ($295 million) in the three months to Dec. 31, missing analysts' estimate of Rs 2,512 cr, per LSEG data.
While Mahindra's tractors and farm equipment sales form only about a third of total revenue, they are far more profitable than its auto business, which comprise close to two-thirds of the topline and includes the sale of SUVs and commercial vehicles.
"Tractor industry contracted on back of last years high base, weather vagaries and lower reservoir levels," Mahindra's auto and farm sector chief executive Rajesh Jejurikar said in a press release.
India's largest tractor maker by sales said its farm equipment segment revenue grew a mere 0.5 per cent, while revenue at the auto segment grew 24 per cent.
Overall revenue rose around 17 per cent to Rs 25,289 cr, coming short of analysts' expectation of Rs 25,514 cr.
Sales of tractors were down 4 per cent during the quarter, while SUV sales rose more than 30 per cent on the back of festive season demand. Mahindra's shares fell 1 per cent after the results.
