M&M tractor sales offset dull SUV demand

M&M tractor sales offset dull SUV demand

Vehicle manufacturer Mahindra and Mahindra Ltd posted a better than expected fourth-quarter profit as rising tractor sales outweighed declining demand for its passenger vehicles.

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.

Indian companies are hoping for an economic turnaround after Narendra Modi won a thumping election victory this month with a pledge to boost growth and create jobs.

"Overall our current outlook is tinged with optimism as we await the economic policies of the new government," the company said in a statement on Friday.

Mahindra's net profit for January to March, its fiscal fourth quarter, rose marginally to Rs 897 crore ($152 million) from Rs 889 crore a year earlier. Net sales rose 4.7 per cent to Rs 10,838 crore.

Analysts had expected a profit of Rs 812 crore, according to Thomson Reuters data. Profit for the quarter was bolstered by a one-time tax writeback of Rs 214 crore.