Maruti Suzuki Q1 net profit up nearly 21% at Rs762 crore

Maruti Suzuki India Ltd, the country's largest car maker, has reported Rs762.3 crore as net profit for the April-June 2014-15 period, a 20.7-per cent year-on-year growth in quarterly profit.

During the quarter, the company recorded net sales (net of excise) of Rs11,073.5 crore, up 10.8 per cent over the previous year.

The board of directors of Maruti Suzuki India Limited today approved the financial results for the quarter ending April-June 2014.

The company sold a total of 299,894 vehicles during the quarter, a growth of 12.6 per cent over the same period of the previous year. Sales in the domestic market stood at 270,643 units, a growth of 10.3 per cent. Exports were up 38.7 per cent at 29,251 units.

Sales in the domestic market stood at 2.70 lakh units, a growth of 10.3 per cent. Net sales were up 10.8 per cent at Rs.11,073.5 crore.

Maruti Suzuki India said the company's cost reduction and localisation initiatives, growth in volumes and favourable foreign exchange helped improve the bottomline during Q1 of 2014-15.

''The company's cost reduction and localisation initiatives, growth in volumes and favourable foreign exchange helped improve the bottom line during the quarter,'' the company said in a statement.

Maruti plans to reduce its import bill by 75 per cent by 2015 in order to safeguard itself from unfavourable exchange rate fluctuations. Accordingly, the automaker plans to lower its net imports to $400 million (around Rs2,460 crore) in the year to March 2015 from $1.7 billion in March 2012.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin stood at 11.5 per cent for the quarter.

Maruti Suzuki India said that subject to the approval of shareholders in the ensuring annual general meeting, Shigetoshi Torii has been appointed as whole- time director designated as director (production) with effect from 31 July 2014 and that Masayuki Kamiya has resigned as a director on the board of the company with effect from close of business hours of 30 July 2014 due to withdrawal of nomination by Suzuki Motor Corporation, Japan.

Japanese parent Suzuki Motor Corporation holds 56.21 per cent stake in Maruti Suzuki India (as per the shareholding pattern as on 30 June 2014).

The stock hit a high of Rs2,589 and low of Rs2,527 so far during the day. The stock hit a record high of Rs2,663 on 2 July 2014 and a 52-week low of Rs1,217 on 28 August 2013.

The stock had outperformed the market over the past one month till 30 July 2014, rising 4.66 per cent compared with a 2.65 per cent rise in the Sensex. The scrip also outperformed the market in past one quarter, surging 33.05 per cent as against Sensex's 16.37 per cent rise.

The large-cap company has an equity capital of Rs151.04 crore consisting of shares of face value Rs5 each.