The country’s largest passenger car manufacturer, Maruti Suzuki India, on Tuesday beat analysts’ estimates by posting a net profit of Rs1,486.2 crore during the April-June quarter, which was a rise of 23 per cent on a year-on-year basis.
The higher profits were on the back of a huge jump in other income, which increased by 134 per cent to Rs 483 crore during the period on a yearly basis. The company’s revenue during the period saw a growth of 11.6 per cent at Rs14,927.3 crore, which was lower than estimates, hit by lower volumes. Net sales increased by 12.05 y-o-y to Rs 14,654.50.
“Profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation, though adverse foreign exchange movement reduced bottomline growth to some extent,” the company said in a statement.
Volume growth slowed down to 2.1 per cent during the quarter against 14 per cent during the same period last year. This was mainly due to the production loss of 10,000 units due to a fire at one of its vendor, Subros. The company sold 3.48 lakh vehicles during the period in the June quarter against 3.41 lakh units in year-ago period. Domestic sales grew by 5.4 per cent to 3.22 lakh units while exports declined 27 per cent on a yearly basis.
On the operational front, the company’s performance was largely in line with estimates. Operating profit grew by 2.25 per cent year-on-year to Rs 2,215.7 crore but margins contracted by 140 basis points to 14.8 per cent, hit by higher employee costs and other expenses, including marketing expenses, and yen appreciation. FE