New Delhi: Country’s largest carmaker Maruti Suzuki India on Tuesday posted a 42.1% jump in net profit at Rs 1,225.56 crore for the second quarter ended September 30, riding primarily on robust sales, reduction in material cost and favourable foreign exchange.
The company had posted a net profit of Rs 862.54 crore during the same period of the previous fiscal.
Net sales of the company rose by 13.2% 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 said in a statement.
“Higher volumes, material cost reduction initiatives and favourable foreign exchange contributed significantly to bottomline growth during the quarter,” the statement added.
After the company results were released, Angel Broking said, “Maruti Suzuki 2QFY2016 results were in line with estimates. Revenues grew 13% yoy to Rs 13,934 crore coming in line with our expectations. Topline growth was primarily driven by volumes which grew about 10% in the quarter.
Realization per vehicle grew by 3% led by a better product mix. Maruti managed to maintain the record margins clocking in a margin of 16.3% (similar to Q1 FY16 levels) despite a marginal appreciation in the Japanese Yen vis-a-vis the Indian Rupee. Operating leverage coupled with reduction in discounts helped the company to maintain record margins during Q2 FY16.
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Given the strong operating performance, the net profit grew strongly 42% yoy to Rs 1,226 crore coming in line with our expectations of Rs 1,248 crore. Given the in line results, we maintain our positive view on the stock.”
The company sold 3,53,335 vehicles during the second quarter, a growth of 9.8%, over 3,21,898 units in the second quarter of 2014-15.
Maruti Suzuki’s shares were trading at Rs 4,467.75 in late afternoon trade on BSE, up 1.82% from previous close.
PTI