Maruti Suzuki India on Wednesday reported a 47 per cent rise in net profit at ₹3,650 crore in the first quarter of the fiscal, riding on the back of cost reduction efforts, favourable commodity prices and foreign exchange gains.
The auto major had logged a net profit of ₹2,485 crore in April-June 2023-24.
Net sales increased to ₹33,875 crore in the June quarter compared with ₹30,845 crore in the year-ago period, according to an exchange filing.
Maruti Suzuki India 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 ₹21,700 per vehicle in the first quarter from ₹14,500 per vehicle in the fourth quarter of last fiscal.
The country’s largest car maker said it sold 5,21,868 vehicles during the first quarter, up 5 per cent from a year ago. It sold 4,51,308 units in the domestic market in the 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 of low single-digit growth made at the start of the fiscal due to various factors, including a high base effect.
The fundamentals of the Indian economy are intact although the short term is muted for the auto industry.
Bharti said 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 the urban market.
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.
Maruti has increased supplies of CNG vehicles, and production of Ertiga CNG, one of the most in-demand models, has increased, he added.
Bharti said sales of CNG passenger vehicle overtook their diesel counterparts for the first time in the April-June quarter.
Maruti will display its first EV at the Bharat Mobility Show to be held in January 2025. The company expects to launch six EV models till 2031.
In the first quarter, the company’s export sales rose 12 per cent to 70,560 units.
He said West Asia, 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 the export markets.
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.
