Companies

Higher sales volumes drive Maruti Suzuki Q2 profit up 3%

Our Bureau New Delhi | Updated on January 08, 2018

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Posts 18% growth in sales, aims to be leader in electric segment as well



The country’s largest passenger car maker Maruti Suzuki India (MSIL) on Friday reported a standalone net profit of ₹2,484 crore for the second quarter ended September 30, up 3.4 per cent, compared with ₹2,402 crore in the corresponding period last year.

Net sales rose 22 per cent year-on-year (YoY) to ₹21,438 crore during the July-September quarter, compared with ₹20,049 crore in the same period last year.

The company sold a total of 4,92,118 vehicles during the quarter, a growth of around 18 per cent over the same period of the previous year.

Sales in the domestic market stood at 4,57,401 units, a growth of 19 per cent. Exports were at 34,717 units, the company said. “The main reason for 3.4 per cent growth in net profit was decline in amount of non-operating income during the quarter.

“Tax was also on the higher side this fiscal (as compared to the same period of the last fiscal),” RC Bhargava, Chairman, told reporters here.

The company had a one-time gain of such income in the same period of the previous fiscal, he said.

Moreover, there was some impact of commodities and advertisement expenses, along with increase in effective tax rates. Demand-wise, models such as Baleno, Vitara Brezza and Dzire, continue to be on high demand, Bhargava said.

e-vehicle plans

Asked about MSIL’s plans on electric vehicles, he said that the electric mobility is all set to make a mark in India.

“We will make electric cars. We cannot give a time-line right now, but electric mobility is set to come to India. We intend to be leaders in the electric segment as well.”

Bhargava said the company’s parent Suzuki and Toyota are in talks for electric mobility and MSIL will continue to access technology from its parent.

On hybrids, he said the company will continue to invest in the technology as it sees them as the bridge when transition takes place from normal combustion engine vehicles to fully electric.

The company’s scrip closed at ₹8,114.80 on the BSE on Friday, up 0.47 per cent from the previous close.

Published on October 27, 2017

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