Mahindra & Mahindra has reported a net profit of ₹1,155 crore for the fourth quarter ended March 31, 2018, an increase of 50 per cent from the year-ago period, helped by big boost in tractor sales coupled with the company's cost-cutting measures.

The automaker’s consolidated revenues grew 25.6 per cent year-on-year to ₹13,189 crore driven by the farm equipment segment.

Operating margins expanded to 15.1 per cent in the quarter from 11.2 per cent in the comparable quarter last year.

“This has been our best quarter ever," said Pawan Goenka, Managing Director. “Our auto sector grew by 20 per cent —highest in 21 quarters, tractors grew at 40 per cent — highest in 31 quarters and we also had best margins ever in tractors."

Goenka, however, added that oil price rise, firming up of commodity prices and liquidity crunch and capacity constraints with suppliers could be potential challenges for the company this year.

He said M&M expects 8-10 per cent growth this year in its tractor sales and 10-12 per cent growth in commercial vehicles sales.

“We remain cautiously optimistic for FY19," Goenka said.

Revenue from the farm equipment segment rose 42 per cent year-on-year to ₹3,716 crore. Revenue from the automotive segment rose 19.6 per cent to ₹9,105 crore.

“For the year FY2018, improvement in overall economic sentiment, two consecutive years of normal monsoon, government’s focus on development of agri and rural sectors, with continued investment in infrastructure, coupled with easy availability of affordable finance, helped drive the demand for the automotive as well as the tractor industry," M&M said in a statement.

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