Mumbai: Mahindra & Mahindra Ltd, India’s top utility vehicle and tractor maker, on Wednesday posted a lower-than-expected 20.6% drop in quarterly net profit that was hurt by high raw material prices.
Mahindra, which aims to enter the United States with a pick-up truck and a sport utility, said net profit fell to Rs2.27 billion ($45.7 million) in the fiscal second quarter to end-September from Rs2.86 billion reported a year earlier.
That beat a Reuters poll forecast of Rs2.04 billion.
Net sales at Rs30.93 billion, however, came below analysts expectations of Rs31.4 billion, but above Rs28.02 billion a year earlier.
Shares in Mahindra, which have a market worth of $1.5 billion, fell 5% in the September quarter, compared with a 2.5% rise in the auto sector index and a 4.5% drop in the key index.