Two of three analysts interviewed forecast net profit declined by more than 50 per cent from a year earlier to about Rs 37 crore ($7.96 million).A third analyst estimated profit fell 70 per cent to 75 per cent to Rs 18 crore to Rs 200 crore.

"I expect a drastic fall in profits," said Soumen Choudhury, analyst with Jet Age Securities. "Almost all their divisions have done badly, with utility vehicles' sales falling by about 20 per cent."

The Mumbai-based company, which also makes light trucks and tractors, reported on its website - www.mahindraworld.com - that sales of its utility vehicles in the April-December period fell 19.7 per cent to 39,417 units, from 49,063 a year earlier. It said light truck sales fell by 3.8 per cent in the same period - to 4,524 from 4,701 in the year-ago period.

Tractor sales however rose by 6.9 percent - to 62,123 from 58,128.

"Even in tractors they've gained share in a falling market through extensive promotion efforts which have significantly eroded their margins," said an auto analyst with a leading Indian securities firm.

Tractor sales fell 11.3 per cent in India in the April-December period as below-normal rainfall in some western and central parts of the country depressed farm output and incomes.

M&M's shares rose 1.9 per cent on Monday to 161.25 Rupees ahead of its results on Tuesday. The benchmark BSE Sensex closed 2.21 per cent lower. M&M stock is down over 75 per cent from its 52-week high of Rs 664.75 struck on February 14, and is up over 27 per cent from its 52-week low of Rs 126.10 hit on October 31.