Company's revenues grew by 28.8% to Rs 7,294.3 crore as against 5,663.5 crore during the corresponding period last year.
Rise in interest rates have increased the cost of raw material but it did not affect much on their volume of sales.
"The growth in profit of the company despite the relentless increase in material costs is due to good volume performance by both vehicles and tractors, and tight control on expenses," the company said.
It sold 44,407 vehicles in the passenger utility vehicle segment, up 14.3% year-on-year, compared with an industry growth of 5.1%. The company"s exports accelerated nearly 83% to 5,717 units.
In the current quarter, the company exported 5,717 vehicles as against 3,125 vehicles registering thereby a growth of 82.9% over Q1 last year.
On an outlook for the rest of the fiscal, a company statement said, "With headline inflation ranging above 9 percent for much of the past year, the RBI has tightened its policy stance aggressively in recent months leading to a sharp rise in loan rates with inevitable adverse impacts on domestic demand and industrial growth," M&M said in a statement.
However, as prospects for agricultural and services sector remain "reasonably robust," its business outlook for the year remains "positive but watchful," M&M said.