Mumbai: Top utility vehicle and tractor maker Mahindra & Mahindra Ltd., on Monday (30 July) reported a surprising 6.4% fall in quarterly profit on softer sales of tractors and high-margin three-wheelers.
Mahindra, which makes the Logan sedan in a joint venture with France’s Renault, said net profit fell to Rs1.91 billion ($47 million) in the fiscal first quarter to end-June from Rs2.04 billion a year ago.
That lagged a forecast of Rs2.09 billion in a Reuters poll of 10 brokerages.
Mahindra, which has about 40% of the tractor market, the world’s largest by sales, has a venture with a unit of Navistar Inc. to make trucks and buses and an alliance with Renault and Nissan Motor Co. to make 400,000 vehicles in a plant in southern India.
Shares in Mahindra, valued at $4.85 billion, fell 7.3% during the April-June quarter, trailing a 2.7% loss for the sector index and a 12% gain for the main index.