Maruti Suzuki India on Thursday reported a net profit of Rs 631.60 crore in the first quarter ended June, a 49 per cent growth over the same period of the previous year (Rs 423.77 crore).
Cost reduction efforts, favourable foreign exchange rates, and the Suzuki Powertrain India merger last fiscal have helped, the company said in a statement.
However, the company’s net sales (net of excise) during the period fell 5.1 per cent to Rs 9,995 crore, from Rs 10,529 crore in the year-ago period.
In volume terms, its sales fell 10 per cent to 2.66 lakh vehicles, against 2.95 lakh units in the corresponding quarter last year. As the fall in sales was in line with the overall industry trend, the company said it was able to maintain its market share.
Exports during the period fell to 21,088 units (32,632 units).
Favourable foreign exchange rates during the quarter helped improve export realisation and limit the impact on net sales, the company added.
Addressing analysts, Ajay Seth, Chief Financial Officer, MSIL, said it was a challenging quarter as demand was low and therefore, the company would increase efforts to woo customers.
“During the quarter, the average discount across models was Rs 13,446 against Rs 11,646 in the year-ago period,” he said.
While the company registered double-digit growth in rural markets, sales in urban areasdeclined, he added.
“We expect rural sales growth, which accounted for 29-30 per cent of the total sales during the quarter, to continue going forward .”
Shares of MSIL closed at Rs 1,414.20 on the Bombay Stock Exchange on Thursday, down 0.12 per cent from the pervious close. Microscope: Page 2