Beating street estimates, Mahindra & Mahindra’s consolidated net profit soared by 50% to Rs 1,155 crore in the fourth quarter ended March 2018 from Rs 770 crore in the year-ago period, the company said in its stock exchange filings. This includes profit after tax filings of the consolidated Mahindra Group, which has Mahindra Vehicle Manufacturers Limited under its name.

The automaker, best known for its farm equipment, credited “improvement in overall economic sentiment” for its performance. “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,” the company said in a statement.

Last year, the company continued to be the third-largest passenger vehicle company and the second-largest commercial vehicle company in India.

The automaker also posed 24% rise in total income from operations to Rs 13,355 crore from Rs 10,795 crore crore during the same period last year. The revenue figures are not comparable to the year-ago period due to the accounting treatment of excise duty under the GST regime, the company said.

“Revenue from operations under pre-GST regime included excise duty which is now subsumed in GST. Consequently, the figures for the quarter and year ended 31st March 2018 are not comparable with the previous periods presented in the above results,” the company said in a release.

Domestic sales crossed the 5 lakh mark after a gap of five years. In FY18, the company recorded its highest-ever tractor volumes for both domestic and export, and retained the leadership position for the 35th consecutive year, Mahindra & Mahindra said. The automaker also achieved its highest-ever sales for its MUV, Scorpio, and Pik-ups this year, and Bolero volumes crossed 1 million since its launch in 2000.

For Q4, the domestic tractor industry witnessed a very high growth of 44%. Mahindra & Mahindra believes the economic activity is expected to gather pace as the transitory effects of implementation of GST recede.

“This outlook will also be lifted by tailwinds from normal rainfall with the weather bureau forecasting a normal monsoon for the third successive year in its first stage long range forecast. While the spatial and temporal distribution remain to be seen, well spread out rainfall is likely to have a salutary impact on the overall demand conditions,” Mahindra said.

The company statement also mentioned that rising crude oil prices “call for greater prudence”. “Escalation in geo-political risks, trade frictions, tightening monetary conditions, and higher crude oil prices could pose downside risks to global trade and demand growth outlook,” it said.

The market has responded positively to Mahindra’s Q4 result filings. Its shares closed 2.26% higher on the BSE at Rs 868.80.