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BUSINESS
Maruti Suzuki India touches 4.4% increase in net profit for the first quater.
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Updated : Jul 27, 2017, 03:10 PM IST
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India's largest carmaker Maruti Suzuki India (MSI) on Thursday posted a 4.4 % increase in its net profit at Rs 1,556.4 crore for the first quarter to June on the back of robust sales and cost reduction efforts.
The company had reported a net profit of Rs 1,490.9 crore for the same period of the previous fiscal. Net sales rose 16.7 percent to Rs 17,132.4 crore for the quarter under review as against Rs 14,654.5 crore a year earlier.
"Growth in volumes, favourable product mix, higher non- operating income and cost reduction efforts contributed to increase in profits," MSI said in a statement. However, costs were impacted by higher commodity prices, sales promotion and marketing expenses, it added.
Additionally, during the quarter, there was a one-off impact of compensation for dealers due to the tax loss incurred on vehicle stock at the time of switchover to GST.
During April-June, the company sold a total of 3,94,571 vehicles, including 26,140 in overseas markets, a growth of 13.2 percent, over same period of the previous year.
The stock was trading 0.22 percent up at Rs 7,594.95 on the BSE.
