Maruti Q1 net profit up 27% to ₹1,975 cr
NEW DELHI: Maruti Suzuki India Ltd posted a 27% on-year rise in net profit for the June quarter thanks to robust sales of cars and sport-utility vehicles and higher realisations due to lower discounts, especially on pricier models.
The country’s largest car maker had a net profit of ₹1,975.3 crore in three months ended June 30, it said in a statement on Thursday. Sales grew 13% to ₹21,810.7 crore.
The results fell short of Bloomberg estimates. A poll of 23 analysts expected the company to report a profit of ₹2,268.5 crore on sales of ₹22,466.5 crore.
Profit lagged expectations due to higher tax provision and lower ‘other income’ owing to a mark-to-market accounting impact, according to analysts. Sales disappointed due to higher demand for the new Swift hatchback as compared to pricier models, they said.
Maruti’s Ebitda (earnings before interest, taxes, depreciation and amortisation) margin, a measure of operating profitability, stood at 14.85% during the quarter, up about 1.5 percentage points from a year earlier, due to higher capacity utilisation and cost reduction efforts, but was singed by adverse commodity prices and forex rates, the auto maker said.
Maruti’s total sales, including exports, grew 24% to 490,479 vehicles last quarter. It included local sales of 463,840 vehicles, up 26% from the year earlier, amid demand for models such as the new Swift and Baleno premium hatchbacks, Vitara Brezza compact sportutility vehicle) and the new Dzire compact sedan.