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Maruti Suzuki Grows by 2.1% in the First Quarter of FY2016-17

Maruti Suzuki today announced the financial results for the first quarter (April-June) of the 2016-17 financial year, which saw the company sell 3,48,443 units during the quarter.
Sameer Contractor
Sameer Contractor
1 min read
2016-07-26 23:25:21
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Maruti Suzuki Grows by 2.1% in the First Quarter of FY2016-17
Key Highlights
  • Maruti Suzuki sold a total of 3,48,443 units in the 1st quarter of FY2017
  • Maruti reported a net profit for the period was Rs. 14,862 million
  • The fire incident at Subros caused Maruti to suspend production in June
Maruti Suzuki today announced the financial results for the first quarter (April-June) of the 2016-17 financial year, which saw the company sell 3,48,443 units during the quarter. The company registered a year-on-year growth rate of 2.1 per cent during the said period with domestic sales including 3,22,340 units, a growth of 5.4 per cent, while exports stood at 26,103 units. The company's net profit for the period was Rs. 14,862 million, a year on year growth of 23 per cent.

While the numbers were positive, Maruti Suzuki did state that the unfortunate fire incident at one its suppliers on May 30, lowered sales for the month of June. For the period of April-May this year, the automaker registered a growth of 10.2 per cent, but the fire at supplier Subros Limited prompted the car manufacturer to suspend production for nearly two days, lowering sales in June. Subros is Maruti's largest supplier of air conditioning system and the disruption in the supply of components led to production being suspended. With the plant and components supply back on track, Maruti is now aiming to recover the lost sales during the remainder of the financial year.
Suzuki Ignis

Suzuki Ignis

Furthermore, Maruti Suzuki registered net sales of Rs. 1,46,545 million for the first quarter of FY2017, growing by 12.1 per cent over the previous year. The company stated that the profit was achieved with the help of a higher turnover, material cost reduction, higher non-operating income and lower depreciation. The negative foreign exchange movement did dampen Maruti's profits to a certain extent.

With the festive season all set to commence in the following weeks, Maruti Suzuki is certainly going to be all geared up to introduce new models and special/limited edition versions of its existing cars to grab the attention of your average Indian buyer. The company's launches for the remainder of the year include the more powerful 1.0-litre Boosterjet equipped Baleno RS that will be the automaker's answer to the hot hatchbacks out there, while the Ignis crossover is also on the cards and will be the next product to be sold via the NEXA dealership network. Speculations also suggest that Maruti Suzuki will finally make its foray into the light commercial vehicle segment towards the end of this year with the Super Carry.
# Maruti Suzuki sales# Sales Figures

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