(Reuters) -Indian automaker Mahindra & Mahindra posted a nearly 18% rise in second-quarter profit on Tuesday, driven by steady demand for its high-margin sport-utility vehicles and tractors, and strong exports.
The Scorpio SUV maker’s standalone profit after tax rose to 45.21 billion rupees ($514.4 million) from 38.41 billion rupees a year earlier.
Mahindra has been among the biggest beneficiaries of the Indian consumer’s pivot to SUVs, helping it outperform rivals Maruti Suzuki and Tata Motors.
The automaker, which commands about 23% of the Indian SUV market, posted a 7% rise in domestic SUV volumes, despite intensifying competition from Maruti and Tata Motors.
Overseas sales of its SUVs, such as the XUV700 and the XUV300, surged 40%. South Africa, Nepal and Australia are some of the automaker’s major export markets.
Mahindra’s earnings were further boosted by a sharp jump in tractor sales, driven by firm rural demand and stable farm sentiment.
Revenue from the farm equipment segment surged 31.5%, led by a 17.7% rise in exports and 32% jump in domestic tractor sales.
Festive season demand, along with a good monsoon, boosted rural demand, helping country’s top tractor maker by sales.
Revenue from operations rose 21.3% to 334.22 billion rupees.
($1 = 87.8950 Indian rupees)
(Reporting by Kashish Tandon and Meenakshi Maidas in Bengaluru; Editing by Subhranshu Sahu)
