NEW DELHI (Reuters) - Automaker Mahindra and Mahindra Ltd reported a 14 percent fall in quarterly net profit on Friday, missing analyst estimates, but said it expected a revival in the economy over coming quarters.
Mahindra, India’s top utility vehicle maker, said net profit for the three months ended Dec. 31 was 8.08 billion rupees ($118.2 million), down from 9.42 billion rupees a year earlier when it benefited from a one-time gain.
Analysts had expected Mahindra to report a net profit of 8.99 billion rupees, according to Thomson Reuters data.
Net sales rose 18 percent to 110.1 billion rupees, helped by new launches of its sport-utility vehicles (SUVs).
“With the macro policy environment now turning more supportive and El Nino conditions, along with its adverse impacts on agricultural output and incomes, set to dissipate, domestic consumer demand is likely to gain strength in the coming quarters,” the company said in a statement.
Mahindra, which is also India’s top tractor maker, said poor agriculture output weakened incomes in rural India which impacted sales of its farm equipment.
Sales of utility vehicles rose 18 percent in the October-December quarter, Mahindra said in the statement.
($1 = 68.3550 Indian rupees)
Reporting by Aditi Shah; Editing by Anand Basu