Auto major Mahindra & Mahindra today reported a 27 percent jump in its second quarter standalone net profit to ₹1,163.27 crore compared with ₹915.38 crore in the same quarter last fiscal due to renewed demand from the rural sector.

M&M’s total standalone revenue from operations stood at ₹11,363.63 crore in the quarter against ₹9,834.41 crore in the year-ago quarter, up 15.56 per cent.

Domestic tractor sales that was the biggest growth contributor this quarter saw a growth of about 37 per cent to touch 57,863 units.

However, currency demonetisation is expected to adversely affect this segment along with sales of personal vehicle models that are popular in the rural market such as Bolero and Scorpio, said Managing Director Pawan Goenka.

“Most of the rural buying still happens in cash. Therefore, there will be an impact of currency demonetisation for one-three months. We expect things to get back to normal starting January,” Goenka said.

Goenka, however, said there will be no impact of GST of auto sales as the GST rates are expected to be in line with the current taxes across automobile segments.

Overall unit volume sales during the quarter stood at 1,14,795, up 11.6 per cent. Utility vehicles sales were at 52,287 units, up 15.6 per cent from the year-ago period. M&M said its total vehicle exports were higher by 13.3 at 15,181 units during the second quarter.

The company’s scrip declined more than 6 per cent on the BSE and closed at ₹1,241 post the result announcement on Friday.