Higher volume and tight control on costs has led Mahindra & Mahindra Ltd to post a 450 per cent jump in net profit at Rs 42.5 crore (Rs 425 million) for the quarter ended June 30, 2003, compared to Rs 7.8 crore (Rs 78 million) recorded in the same period previous fiscal.

The board also approved a proposal to merge two subsidiaries -- Mahindra Information Technology Services Ltd and Mahindra Eco Mobiles Ltd -- with M&M with effect from July 1, 2003, the company said in a release in Mumbai on Monday.

The objectives of the merger are to reflect the assets of the company at their true values, reduce the number of subsidiaries and to enhance financial and fiscal efficiencies of the group, it added.

M&M has reported a 20 per cent growth in net sales and income from operations at Rs 992.89 crore (Rs 9.93 billion) during Q1 of the current fiscal as against Rs 828.43 crore (Rs 8.28 billion) reported in Q1 of FY-03.

Sales of utility vehicles rose by 39 per cent at 18,345 units. The strong market pull for the Scorpio, which completed one year this quarter, was the principal reason for the good performance, it added.

The Maxx and its variants and the recently introduced Bolero Invader also sold briskly during the quarter, consequently, the company's market share in UV's from 48.7 per cent to 50.2 per cent, it said.

Sales of light commercial vehicles was lower at 1,728 units as against 1,881 units sold in Q1 of last year.