Maruti Suzuki profit up 23% in Q1 of FY 2016-17
The Dollar Business Bureau
Maruti Suzuki India Ltd. said on Tuesday that it has posted a 23 percent rise in its net profit during the first quarter of 2016-17 fiscal.
The country’s top-selling car manufacturer said the company’s profit during the April-June quarter stood at Rs.14.86 billion ($220.80 million), up from Rs.12.08 billion during the same period a year ago. Its net sales grew about 12 percent to 146.5 billion rupees.
“The profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation,” Maruti Suzuki said in a statement.
Maruti’s recent output is important as the Japanese car maker attempts to recover from an emissions testing scandal.
Maruti Suzuki, controlled by Japanese company Suzuki Motor Corp through its 56.2 percent stake (worth $11.5 billion), sold 348,443 units during the first quarter, thereby registering a growth of 2.1 percent over the corresponding period of the previous fiscal.
The company’s June vehicle sales were hit by a 10 percent decline due to a fire at its component supplier, Subros Ltd.
Its domestic sales, too, grew by 5.4 percent to 322,340 units. It exported a total of 26,103 units during the quarter.
"Adverse movement of foreign exchange declined the company’s profits to little extent," it said.
Maruti looks to achieve a double-digit sales growth in the domestic market in the current financial year. It has announced Rs.44 billion for capital expenditure, up 76 percent from Rs.25 billion in the previous year.