Maruti Suzuki India reported Q1 results below street expectations as net profit came in at Rs 1,975.3 crore, up 27% on year.
India’s largest car-manufacturer Maruti Suzuki India reported Q1 results below street expectations as net profit came in at Rs 1,975.3 crore, up 27% on year. Earlier, a Reuters poll of analysts, had said that Maruti Suzuki could report a 46% jump in stand-alone net profit to Rs 2,272.7 crore for the quarter under review. The net revenue came in at Rs 21,810 crore, crore up by 27.3% as compared to the same period previous fiscal. Maruti Suzuki shares were seen trading at 9,489, down by more than 2.3% on NSE this afternoon. We take a closer look ta the results, and bring you key figures in a nutshell.
Net profit in Q1 (2018-19) came in at Rs 1,975.3 crore, up 27 per cent compared to previous year. While the operating profit increased by 59.7 per cent, the net profit increased by 26.9 per cent on account of lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year, the company said in its release.
The company has reported a 27.3% increase in net sales to Rs 21,810 crore in April-June quarter. The sales volume has also seen a 24.4% rise to 4,90,479 vehicles in the quarter. The Company sold a total of 490,479 vehicles during the Quarter, a growth of 24.3 per cent over the same period of the previous year. Sales in the domestic market stood at 463,840 units, a growth of 25.9 per cent. Exports were at 26,639 units, said the release on the exchanges.
The EBIT came in at Rs 2,613.3 crore, up 59.7% on year. “The operating profit was Rs 26,313 million, a growth of 59.7 per cent over the same period previous year on account of higher sales volume, favourable product mix and cost reduction efforts, partially offset by adverse commodity prices and forex rates,” Maruti Suzuki said.
The prfit before tax came in at Rs 2882.4 crore, up by more than 25.4%.
In the quarter, the firm undertook various cost reduction efforts, and has lowered its advertisement expense. Further, the economies of scale were partially offset by adverse commodity prices.