Mahindra tops Q1 profit on strong SUV sales

BENGALURU, Aug 4 (Reuters): Mahindra and Mahindra on Friday posted an estimate-beating 98 per cent jump in first-quarter profit, boosted by strong sales of its pricier sport-utility vehicles (SUVs).
The results for Mahindra -- India's second-largest SUV maker by volume -- were in line with rivals Maruti Suzuki and Tata Motors, which also posted higher-than-expected profits on the back of strong SUV sales.
Mahindra's "good set of numbers," will continue to be backed by higher operating leverage and cooling commodity prices, which in turn would prop margins up further, said Himanshu Singh, analyst at Prabhudas Lillader.
The first quarter profit margin before exceptional items rose to 10.4 per cent from 7.7 per cent a year before.
Mahindra said its plans to launch a new range of electric SUVs were on track.
Chief Executive Officer Anish Shah said the company was not "looking for additional funding in the EV space," a day after roping in Singapore's Temasek as an investor for its EV unit - Mahindra Electric Automobile.