Net sales for the quarter rose 11% to R11,073 crore, largely in line with analysts' estimates. Domestic volumes in the quarter rose 10% to 2.70 lakh units on the back of strong demand for mainstays like the WagonR, Dzire and Alto, besides the new Celerio. Export volumes in April-June also went up 39% to 29,251 units.
The companys cost-reduction and localisation initiatives, growth in volumes and favourable foreign exchange helped improve the bottom line during the quarter, a company statement said.
After a lull last fiscal, Maruti has a bevy of launches planned this year. That is likely to help it gain market share, which currently stands at 42%. The company has set a growth target of 10-15% for the fiscal, and is on track with 10% growth in April-June.
In September, the company will launch the Ciaz mid-size sedan to challenge Honda's top-selling new City, followed by a diesel variant of the Celerio, a new Alto variant with a bigger 1-litre engine, and facelifts for the Swift, Dzire and Ertiga models. It will also foray into the light commercial vehicle segment with a new diesel-powered product challenging Tata's Ace and Mahindra's Maxximo.
Separately, the company will also seek shareholders vote by September on the revised proposal for its new mega-facility that is scheduled to come up in Gujarat. Instead of Maruti operating the plant, Japanese parent Suzuki Motor has sought approval to directly invest in the plant through a wholly-owned subsidiary, which will then sell fully-built cars to Maruti on a no-profit basis. The move will help Maruti save on capital, which it can re-invest in other areas, such as marketing and overseas expansion.
The scrip closed down 1.07% on the BSE, at R2,524.50, on Thursday.