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Higher volumes, cost reduction efforts and favourable foreign exchange has helped Maruti Suzuki India (MSIL) to report standalone net profit of ₹1,193 crore for the first quarter (April-June), up 56 per cent from the same period last year.
The company had reported net profit of ₹762 crore in the corresponding period last year, MSIL said.
“During the quarter, higher volumes, cost reduction efforts, lower sales promotion expenses, and favourable foreign exchange helped improve the performance,” it said.
Net sales were also up 18 per cent at ₹13,078 crore (₹11,073 crore), the company said. EPS stood at ₹39.49 in the quarter against ₹42.51. “Maruti Suzuki results were in line with estimates. Revenues grew 18 per cent year-on-year to ₹13,425 crore against expectations of ₹13,466 crore. Volumes during the quarter grew a robust 14 per cent year-on-year. Realisation per vehicle grew 4 per cent year-on-year on the back of better product mix,” said Bharat Gianani, Senior Research Analyst – Automobile at Angel Broking.
Operating margins improved 420 basis points year-on-year to 16.3 per cent (as forecasted) due to reduction in raw material costs and reduction in the discounts, he said.
MSIL’s shares closed at ₹4,195.65 on the BSE on Tuesday, up 0.46 per cent from the previous close.
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