Mahindra & Mahindra Q2 net falls 20.6 pct
October 29th, 2008 | by admin |Mahindra & Mahindra, India’s top utility vehicle and tractor maker, on Wednesday posted a lower-than-expected 20.6 per cent 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 2.27 billion rupees ($45.7 million) in the fiscal second quarter to end-September from 2.86 billion reported a year earlier.
That beat a Reuters poll forecast of 2.04 billion rupees.
Net sales at 30.93 billion rupees, however, came below analysts expectations of 31.4 billion rupees, but above 28.02 billion rupees a year earlier.
Shares in Mahindra, which have a market worth of $1.5 billion, fell 5 per cent in the September quarter, compared with a 2.5 per cent rise in the auto sector index and a 4.5 per cent drop in the key index.
