Country’s top carmaker Maruti Suzuki India (MSI) on Tuesday reported a 42.1 per cent jump in net profit at Rs. 1,225.56 crore for the September quarter, driven by strong sales growth, lower material cost and favourable foreign exchange.
The company had posted a net profit of Rs. 862.54 crore during the same period last fiscal.
Net sales of the company rose 13.2 per cent to Rs. 13,574.8 crore during the second quarter as against Rs. 11,996.33 crore during the same period year ago, Maruti Suzuki India (MSI) said in a statement.
Commenting on the results, MSI Chairman R C Bhargava said the company’s performance was in line with what people were expecting.
“The reasons for high profit were higher volumes, favourable foreign exchange, commodity prices and benefits from cost reduction exercises,” he said.
Going forward, festive season retail sales will be good in this and the next month, he added.
“Generally, December sales are different but there have been a lot of purchases in the last couple of years, he said.
Therefore the quarter should be good, he said, adding the company is maintaining its guidance of double digit growth in the current fiscal.
“The discount for this quarter was at Rs. 19,500 per model on an average as compared to Rs. 16,000 in the preceding period,” Bhargava said.
On exports, he said the company expects it to be higher than last year.
During the second quarter, the company sold 3,53,335 vehicles, a growth of 9.8 per cent, over 3,21,898 units in the second quarter of 2014-15.