Mumbai, Aug 8: India's largest utility vehicle maker, Mahindra & Mahindra Ltd reported 20% rise in its net profit for the April-June quarter of FY13 at Rs 7.26 billion ($132 million) as robust sales of its sporty cars offset sluggish tractor sales.
Mahindra & Mahindra said in a statement that its revenue surged 40% to Rs 92.48 billion in the reporting quarter.
The world's largest tractor maker with over 40% market share in domestic market witnessed drop in sales as poor economic growth and weak monsoon dented the demand.
"The drought-like conditions prevailing in several (Indian) states today has only added to the risks facing domestic companies," the company said in a statement. "Our near term outlook on the economy is cautious and watchful."
Mahindra, the flagship of the $14.4 billion Mahindra Group, said Q1 profit surged mainly due to a 32% increase in passenger vehicle sales over Q1 of 2011.
Out pacing its local rivals like Maruti and Tata Motors, Mahindra's sales surged helped by robust demand for newly launched XUV 500 SUV and its all-diesel line-up in rising petrol price regime.
However, Mahindra's tractor sales fell 1% on-year during Q1 due to weak demand.
Shares of M&M closed at Rs. , up % Wednesday on Mumbai bourse.