Maruti Suzuki net profits spike to Rs 631.6 cr while volume sales down 9.98 per cent compared to Q1 2012.
Maruti Suzuki India (MSI) on Thursday posted a 49 per cent jump in net profit at Rs.631.6 crore for the first quarter ended June 30, 2013, helped by favourable foreign exchange rates as well as benefits of merger of Suzuki Powertrain India.
The country’s largest car maker had posted a net profit of Rs.423.77 crore in the April-June quarter of last fiscal.
“The increase (in net profit) was due to focussed cost reduction efforts undertaken by the company, favourable foreign exchange rates and the benefit from merger of Suzuki Powertrain India Limited (SPIL) with the company last fiscal,” the company said.
During the quarter under review, sales declined to 2,66,434 units from 2,95,896 units in the year-ago period. In value terms, net sales stood at Rs.9,995.12 crore against Rs.10,529.24 crore, down 5 per cent.
For the current financial year, the company said it expected sales volumes to grow between zero per cent and 5 per cent.
Further, the market leader added that it expected discounts on car prices to increase in the current quarter due to weak demand, especially on diesel-powered cars.
The company’s shares closed at Rs.1,414.20 a piece, down 0.12 per cent from its previous close on the BSE.