Mahindra Q2 profit rises 10 pct, beats expectations

Wed Nov 13, 2013 3:40am EST

Nov 13 (Reuters) - Mahindra and Mahindra Ltd, India's largest utility vehicle maker, posted a better-than-expected 10 percent rise in second-quarter profit as lower costs and strong demand for its tractors made up for slowing SUV sales.

Mahindra said net profit for the quarter ended Sept. 30 was 9.9 billion rupees ($156 million) compared to 9.02 billion rupees a year earlier. Net sales fell about 9 percent to 88.14 billion rupees compared with 96.59 billion rupees a year ago.

Analysts on average were expecting a net profit of 8.8 billion rupees on revenue of 89.3 billion rupees, according to Thomson Reuters I/B/E/S.

Mahindra's shares, valued at $8.6 billion, have fallen 4.9 percent so far this year, underperforming a 4.5 percent rise in the main index.

($1 = 63.6375 Indian rupees)

(Reporting by Aradhana Aravindan in MUMBAI)