Tractors boost Mahindra’s Q2 earnings

A surge in tractor sales boosted the July-September earnings for Mahindra and Mahindra Ltd (M&M), which saw a slowdown in demand for its sport utility vehicles (SUVs) as consumers delayed purchases in anticipation of goods and services tax (GST) cuts.

- Ayaan Kartik

A 32% surge in sales of tractors to 123,000 units led the revenue growth of Mahindra in the September quarter.

(MINT)

Mahindra's consolidated net profit rose 13% to ₹3,955 crore, while revenue increased 22% to ₹46,106 crore in the second quarter ended September. The revenue growth was led by a 32% surge in sales of tractors to 123,000 units during the period, while SUV sales rose 13% to 261,703 units.

Encouraged by robust sales, the company's management raised its tractor industry growth forecast amid rural momentum from good monsoons and GST cuts.