Maruti Suzuki Q1 profit rises 23% to Rs1,486.20 crore

New Delhi: India’s largest car maker Maruti Suzuki India Ltd on Tuesday said net profit for the quarter ended 30 June rose by 23% to Rs.1,486.20 crore, beating estimates, as it benefited from higher sales and lower material costs.

Net sales rose 12.1% from a year ago to Rs.14,654.50 crore.

A Bloomberg poll of 29 analysts had estimated Maruti Suzuki’s net profit at Rs.1,224 crore.

Profit in the quarter was boosted by a higher sales, material cost reduction, higher non-operating income and lower depreciation, the company said in a statement.

“Adverse foreign exchange movement reduced profits to some extent,” it added.

Maruti Suzuki sold 348,443 units during the quarter, a rise of 2.1 % from the year-ago period. This includes 322,340 units in the domestic market, an increase of 5.4%.

“The growth in the first two months of the quarter had been 10.2% but the unfortunate incident of fire at a key vendor of the Company resulted in lower sales in June 2016. The Company hopes to recover the lost sales during the course of the year,” Maruti Suzuki said.

Financial results for the quarter have been prepared in compliance with Ind-AS accounting standards, and for a like-to-like comparison, the results for the fiscal first quarter of last year have been restated, the company said.

Maruti Suzuki India Limited