Maruti Suzuki reported 23 per cent rise in net profit at Rs 1,486.20 crore for the quarter ended June 30, 2016 against Rs 1,208.10 crore in the corresponding quarter a year ago. Net sales of the car maker increased by 12 per cent to Rs 14,654.50 crore in the quarter under review against Rs 13,078.30 crore in the same quarter last year.
According to Reliance Securities, operating performance of Maruti Suzuki stood in line with expectation, however, the bottom line was above estimate on the back of higher-than-expected other income.
During April-June period, Maruti Suzuki sold a total of 348,443 units, a growth of 2.1 per cent over the same period of the previous financial year. This includes 322,340 units in the domestic market, a growth of 5.4 per cent.
The auto major exported 26,103 units for the quarter ended June 30, 2016. The growth in the first two months of the quarter had been 10.2 per cent but the unfortunate incident of fire at a key vendor of the company resulted in lower sales in June 2016. The company hopes to recover the lost sales during the course of the year.
In a release, Maruti Suzuki said, “Higher turnover, material cost reduction, higher non-operating income and lower depreciation supported bottomline figures of the company. However, adverse foreign exchange movement reduced profits to some extent.”
Total expenditure of the company jumped by 12.36 per cent to Rs 13,350.50 crore against Rs 11,881.20 crore in the same quarter a year ago.
Share price of the company settled 1.60 per cent down at Rs 4,478.