M&M Q1 net profit up 20%

Utility vehicle major Mahindra & Mahindra (M&M) on Wednesday posted net profit of Rs 725.64 crore for the quarter ended June 30, 2012 as compared to Rs 604.88 crore for the quarter ended June 30, 2011, an increase of 20 per cent.

During the quarter under review, the company's total income grew to Rs 9,427.24 crore from Rs 6,782.12 crore for the quarter ended June 30, 2011. Net sales in April-June were up 40 per cent from a year ago to Rs 9,248 crore.

“The growth in the profit despite the relentless increase in material costs is due to good volume performance by the automotive sector and tight control on expenses," the company said in a statement. "Our near term outlook on the economy is cautious and watchful as the drought-like conditions prevailing in several states today has only added to the risks facing domestic companies," the statement added.