Maruti Suzuki Net Profit Declines 27% In June Quarter On Weak Demand

Maruti Suzuki India - the country's largest carmaker - on Friday reported a net profit of Rs. 1,435.5 crore in the April-June period. That marked a fall of 27.32 per cent from Rs. 1,975.30 crore in the corresponding period a year ago. 

The carmaker said its net profit and sales declined as the auto sector continued to face pressure amid slowing economic growth. The net profit in the June quarter was aided by an over three-fold increase in other income, which came in at Rs. 836.40 crore, according to a regulatory filing by the company.

Its revenue from sales declined 14 per cent to Rs. 18,753.20 crore compared with Rs. 21,810.70 crore in the corresponding period a year ago.

The company sold a total of 402,594 vehicles during the quarter, marking a decline of 17.9 per cent compared to the year-ago period.

Sales in the domestic market fell 19.3 per cent to 374,481 vehicles. Exports stood at 28,113 vehicles, Maruti Suzuki said.

Maruti Suzuki's operating earnings before interest and taxes (EBIT) slumped 57.1 per cent to Rs. 1,129.20 crore, the Delhi-based carmaker said.

At 2:01 pm, Maruti Suzuki share price traded 1.54 per cent higher at Rs. 5,848.95 apiece on the BSE, outperforming the benchmark Sensex index which was flat.