Maruti Suzuki Profit Misses Estimates In First Quarter, Rises 27 Per Cent

Maruti Suzuki India today released the sales results for the first quarter of the 2018-19 financial year. Between April and June 2018, the carmaker's net sale during the quarter was Rs. 218,107 million, up 27.3 per cent over the same period the previous year, during which the company has made Rs. 193,641 million. Profit before tax (PBT) for Maruti Suzuki India was Rs. 28,824 million, and after-tax expenses, the company profit after tax (PAT) stood at Rs. 19,753 million. The net profit went up 26.9 per cent compared to the same period last year, during which the company's net profit stood at Rs. 15,564 million. Profits were on account of higher sales volume, favourable product mix and cost reduction efforts, partially offset by adverse commodity prices and forex rates.

The company's expenses during the Q1 of FY 2018-19 also went up to Rs. 198,488 million against the Rs. 181,614 million from last fiscal year. Raw material costs, in particular, have gone up sharply in this quarter to Rs. 120,033 million. The company is, of course, expected to offset this by increasing the price of its products, especially with the weaker rupee value., which is right now Rs. 68.69 for every $ 1.

Production, on the other hand also saw a sizeable growth, as the company's total sales reached 490,479 vehicles, registering a growth of 24.3 per cent, between April and June 2018. This is against the 371,293 units that the company sold during the same period in the last financial year. Sales in the domestic market 25.9 per cent, with India sales accounting for 463,840 units, compared to the 343,705 units sold between April and June 2017. Exports during Q1 accounted for 26,639 units.