Maruti Q1 profit soars 23% to Rs 1,486 crore

Country's largest carmaker Maruti Suzuki India reported 23 percent jump in net profit for the first quarter to Rs 1,486.2 crore, its best-ever quarterly result, on the back of material cost reduction and higher non-operating income.

New Delhi: Country's largest carmaker Maruti Suzuki India on Tuesday reported 23 percent jump in net profit for the first quarter to Rs 1,486.2 crore, its best-ever quarterly result, on the back of material cost reduction and higher non-operating income.

The auto major had posted a net profit of Rs 1,208.1 crore for the same period in the previous fiscal.

Net sales rose by 12.1 percent to Rs 14,654.5 crore for the first quarter as against Rs 13,078.3 crore last year, Maruti Suzuki India said in a statement.

"The profit 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," it added.

The firm said it sold 3,48,443 units during the quarter, a growth of 2.1 percent a year ago. This includes 3,22,340 units in domestic market, a growth of 5.4 percent.

Exports during the quarter stood at 26,103 units.

"The growth in the first two months of the quarter had been 10.2 percent, but the unfortunate incident of fire at a key vendor of the company resulted in lower sales in June 2016," the company said.

The company hopes to recover the lost sales during the course of the year, it added.

Maruti Suzuki India stock was trading at Rs 4,575.00 on BSE, up 0.18 percent from the previous close in late afternoon session.