New Delhi, Jul 31 (PTI) Maruti Suzuki India on Wednesday reported 47 per cent rise in net profit to Rs 3,650 crore for June quarter FY25, riding on the back of cost reduction efforts, favourable commodity prices and foreign exchange gains.
The auto major had logged a net profit of Rs 2,485 crore in April-June FY24. Net sales increased to Rs 33,875 crore in June quarter as compared with Rs 30,845 crore in the year-ago period, according to an exchange filing.
The profit increased on account of cost reduction efforts, favourable commodity prices and foreign exchange gains, it stated.
Addressing an investor conference, Maruti Suzuki India (MSI) Executive Director Corporate Affairs Rahul Bharti said the gains from favourable commodity prices and foreign exchange were partly offset by higher discounts, which rose to an average of Rs 21,700 per vehicle in the first quarter from Rs 14,500 per vehicle in the fourth quarter of last fiscal.
The country’s largest carmaker said it sold 5,21,868 vehicles during the first quarter, up 5 per cent as compared to the same period previous fiscal. It sold 4,51,308 units in the domestic market in June quarter, an increase of 4 per cent year-on-year.
On the outlook, Bharti said the company is sticking with auto industry body SIAM’s forecast at the start of the fiscal of low single-digit growth due to various factors, including high base effect.
The fundamentals of India are intact although the short term is muted for the auto industry, he said adding the company is not worried about it and will focus on delivering what the market needs.
He also pointed out that the rural market continues to outpace urban for Maruti Suzuki and has been happening for a long time now. The company has also gained good traction with CNG vehicles, Bharti said, adding one out of every third car sold in the domestic market in Q1 was a CNG vehicle and MSI is on track to achieve its target of 6 lakh vehicle sales this fiscal.
MSI has increased supplies of CNG vehicles, and production of Ertiga CNG, one of the most in-demand models, has been increased, he added.
Bharti said in Q1FY25 for the first time in India overall CNG passenger vehicle sales overtook that of its diesel counterpart. On a query regarding electric vehicle launch, he said MSI will be displaying its first EV at the Bharat Mobility Show to be held in January 2025.
With six EV models lined up till 2031, he said it will be almost one EV model launched every year from thereon. In the first quarter, the company’s export sales rose 12 per cent to 70,560 units.
He said the Middle East, Latin America and Africa have shown growth and the target of achieving 3 lakh exports in this fiscal is achievable.
Compact SUV Jimny has emerged as the largest export model for the company, while other models such as Dzire, Baleno, Fronx and Grand Vitara were the other top selling models in export markets in Q1.
The automaker stated that its board has recommended the appointment of Anjali Bansal and Ireena Vittal as independent directors. The board also recommended the reappointment of Lira Goswami as an independent director.
Shares of the company ended 2.28 per cent up at Rs 13,167.95 apiece on the BSE. PTI MSS RKL ANU ANU
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