Maruti Suzuki beats street; Q1 net jumps 49% to Rs 632cr
Maruti Suzuki sold 2.66 lakh passenger cars last quarter, down 10 percent year-on-year. But favourable forex rates boosted export realisations and thus helped control decline in net sales to 5 percent.
July 26, 2013 / 14:02 IST
Moneycontrol Bureau
Maruti Suzuki beat street expectations on Thursday with first quarter net profit surging 49 percent year-on-year to Rs 632 crore, helped by favourable foreign exchange rates, which boosted export realisations, apart from synergies from the merger of Suzuki Powertrain India.The company's net sales were down 5 percent from a year ago to Rs 9,995 crore in April-June quarter, as passenger car demand remained sluggish.Analysts on an average had expected the India's largest passenger car maker to report a net profit at Rs 620 crore on revenue of Rs 9,900 crore, according to a CNBC-TV18 poll."The increase (in net profit) was due to focussed cost reduction efforts undertaken by the company, favourable foreign exchange rates and the benefit from the merger of Suzuki Powertrain India Ltd with the company last fiscal," it said in a statement.Maruti Suzuki had announced the merger of Suzuki Powertrain last June. The merger is effective April 1, 2012 and after all the formalities were completed on March 17 this year, SPIL's results for FY13 were included in the current quarter, the company noted.Maruti sold 2.66 lakh vehicles last quarter, down 10 percent year-on-year. While domestic sales declined 7 percent to 2.45 lakh units, exports tumbled 35 percent to 21,088 units.The fall in sales was in-line with the industry, and despite the decline, it was able to maintain market share, the company said.Also Read: ITC Q1 net up 18% to Rs 1,891cr, sales miss expectationsIts earnings before interest, tax, depreciation and amortisation (EBITDA) rose 48 percent to Rs 1,166 crore and operating profit margin grew by 420 basis points to 11.4 percent.Maruti's other income surged 82 percent to Rs 204 crore in April-June quarter.
Maruti Suzuki initially rose around 2 percent after the results were announced, but skidded soon after to close at Rs 1.414, down 0.5 percent on NSE.Nachiket Kelkar
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