Maruti Suzuki India (MSI) on Monday reported a consolidated net profit of ₹2,525 crore for the first quarter that ended June 30, a two-fold increase from ₹1,036 crore recorded in the same period of 2022-23.

Total revenue from operations also jumped 22 per cent year on year to ₹32,338 crore in the April-June quarter ₹26,512 crore).

The company sold a total of 4,98,030 vehicles during the quarter, up 6.4 per cent compared with the same period last year.

Domestic sales

In the quarter, domestic sales stood at 4,34,812 units, up 9.1 per cent year on year. The export sales were at 63,218 units (69,437 units).

Shortage of electronic components in this quarter resulted in over 28,000 vehicles not being produced. Pending customer orders stood at about 3,55,000 vehicles at the end of the quarter and the company is making efforts to serve these orders fast, it said.

Acquiring SMG shares

Meanwhile, the board of directors at its meeting approved termination of the contract manufacturing agreement with Suzuki Motor Gujarat (SMG) and exercising the option to acquire the shares of SMG from Suzuki Motor Corporation (SMC, Japan) subject to all legal and regulatory compliances, including minority shareholders’ approval.

The mode of acquisition, including consideration to be paid to SMC, will be decided in a subsequent board meeting, the company added.

“The result of this will not, in any way, affect either the production or profits as far as customers or shareholders are concerned. But, it will facilitate Maruti’s working and to the extent that Maruti’s working becomes more streamlined and easier to handle,” said RC Bhargava, Chairman, MSIL.

The turnover of SMG in the last financial year ended on March 31, 2023, was ₹31,852.5 crore. Currently, SMC holds 100 per cent equity capital of SMG.

Shares of MSIL closed at ₹9,819.55 apiece on the BSE on Monday, up 1.56 per cent from the previous close.