The company had posted a net profit of Rs 881.78 crore in the corresponding period of the previous fiscal, Mahindra & Mahindra said in a filing to BSE. Net sales during the period under review stood at Rs 9,708.05 crore as against Rs 10,006.85 crore in the year-ago quarter, down 2.9 percent.

In the first quarter, Mahindra & Mahindra along with its wholly-owned arm Mahindra Vehicle Manufacturers Ltd (MVML) sold 49.354 utility vehicles, while tractor sales stood at 59.348 units in the domestic market, the company said.

On the outlook, the company stated the Indian economy is gradually gaining momentum. Stalled projects are coming back on line while new project announcements have picked up pace in the past couple of quarters.

"Capex trends, as a result, are far healthier today than they were a year ago which bodes well for future growth," the company said. While the consumer demand remains weak, the better than expected rain received in the monsoon season has so far provided room for optimism on this front as well, it added. Shares of Mahindra & Mahindra were trading at Rs 1398.00 per scrip in afternoon trade, up 0.27 percent from previous close on the BSE.

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