Mumbai, Oct 29 (UNI) The flagship company of the Mahindra Group, Mahindra and Mahindra Limited, has reported a dip in the net profit for the second quarter.
The company's standalone net profit stands at Rs 225.9 crore for the second quarter of the current fiscal as against Rs 247.2 crore in the corresponding period last year.
Despite a growth of 19 per cent in the auto sector, the sluggish growth in profits is because of a deceleration in tractor demand, adverse impact of Rupee appreciation on export profitability, and finance costs due to large acquistions to meet the growth plans of the company, a press release here today said.
The domestic tractor industry continued its declining trend in Q2 of current fiscal. The company's domestic tractor sales declined by 5.4 per cent in the second quarter. It sold 20,633 tractors in Q2 as against 21,801 tractors in Q2 last year.
Due to the Rupee's appreciation, the export sector was also hit and during the quarter, the company exported 1639 tractors compared to 1764 tractors in the corresponding period last year.
The engine business revenue of the company performed reasonably well this quarter which grew by 27.1 per cent to Rs 112.50 crore as against Rs 88.5 crore last year.