Maruti Suzuki April-June net up 23%; exports fall 26.7%

Maruti Suzuki reported unaudited standalone net profit of Rs 1,486.2 crore in the April - June quarter, up 23.02% from the Rs 1208.1 crore posted in the same period last year. 

This is despite the fire at a key component provider in the month of June, which had prompted Maruti Suzuki to halt production temporarily which led to a loss of sales in the month. 

In April - June quarter, the company's net sales were up at Rs 14,654.5 crore, up 12.05% from the Rs 13,078.3 crore posted in the same period last year. 

It's total income also went up to Rs 15,410.6 crore, up 13.45% from the Rs 13,583.4 crore posted in Q1 last year. 

In the first three months of the FY17 financial year, Maruti sold 3,48,443 lakh units, up 2.1% from last year. Out of this, domestic sales accounted for 3,22,340 units, up 5.4% and exports accounted for 26,103 units. Maruti's exports declined 26.7% in the quarter to 26,103 units from the 35,635 units sent overseas in the same period last year. 

Source: Maruti Suzuki

Maruti Suzuki said, "In the first two months of the quarter, the company had been growing at 10.2% but a fire at the company's key vendor Sobros Limited, resulted in lower sales in June. We hope to recover the lost sales during the course of the year" 

Maruti said, "The profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income, and lower depreciation. Adverse foreign exchange movement reduced profits to some extent."

After the results were announced, at 1517 hours, Maruti's shares were down 1.88% or Rs 85.55 to Rs 4,465.05 apiece