The country's largest carmaker Maruti Suzuki India today reported 20.69 per cent increase in net profit at Rs 762.28 crore for the first quarter ended June 30, 2014-15, riding on robust sales, cost reduction and forex gains.
It had posted net profit of Rs 631.60 crore in the same period last fiscal, MSI said in a statement.
Net sales during Q1, 2014-15 stood at Rs 11,073.51 crore, up 10.78 per cent as against Rs 9,995.12 crore in the same quarter of last fiscal.
MSI said it sold 2,99,894 vehicles during Q1, a growth of 12.6 per cent over the year-ago period.
Sales in the domestic market stood at 2,70,643 units, up 10.3 per cent. Exports were at 29,251 units, up 38.7 per cent.
The company said its cost reduction and localisation initiatives, growth in volumes and favourable foreign exchange helped improve the bottomline during the quarter.
The MSI scrip was trading at Rs 2,558.10, up 0.24 per cent, on the BSE.
Maruti Suzuki Q1 net up 20.7% at Rs 762.28 cr
(Reuters) Maruti Suzuki India Ltd, India's biggest carmaker, reported a 21 percent rise in first-quarter net profit, beating estimates, as early signs of an economic revival boosted sales.
Prospects of a pick-up in the economy, spearheaded by the newly elected government of Prime Minister Narendra Modi, could spur a marginal rise in car sales in the fiscal year that started April 1, according to an industry body.
The expected increase follows two consecutive years of decline as buyers were put off by high inflation and interest rates in Asia's third-largest economy.
Maruti's wide dealership network, especially in rural areas where disposable incomes are rising, and a strong pipeline of new vehicles has prepared the carmaker for a recovery in car demand, analysts say.
Maruti, controlled by Japan's Suzuki Motor Corp, said profit for the April-June quarter was 7.62 billion rupees ($126.14 million), up from 6.32 billion rupees in the same year-ago period. Net sales rose about 11 percent to 110.74 billion rupees.
Analysts had expected the company to post a profit of 7.35 billion rupees, according to Thomson Reuters I/B/E/S.
The sale of Maruti cars and utility vehicles rose 10.3 percent in the April-June quarter, lead by strong performance of its small, entry-level cars targeted mainly at first time buyers that are seen returning to the market.
Total passenger car sales in India rose 2.24 percent in the April-June quarter but weak