Maruti Suzuki Q1 Net Profit up 25.3% per cent
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Maruti Suzuki Q1 Net Profit up 25.3% per cent

Jul 23, 2009
  Maruti Suzuki Q1 Net Profit up 25.3% per cent
New Delhi, July 23, 2009
The Board of Directors of Maruti Suzuki India Limited approved the financial results for the first quarter of 2009-10 (April-June 2009) here today.

The Company registered Net Sales of Rs 6,340 crore during the first quarter of 2009-10, a growth of 34 per cent compared to the same period of the previous year.

Net Profit during the first quarter of 2009-10 was Rs 583.5 crore as against Rs 465.9 crore during the same period of the last fiscal year, reflecting a growth of 25.3 percent.

Overview

During the quarter, the Company achieved strong volume growth in the domestic as well as export markets. The positive response to new models and continued focus on tapping new market segments enabled the Company to achieve near double digit volume growth and enhanced market share.

In exports, the positive response to the A-star, combined with scrappage incentives offered by governments in Europe, led to sharp growth.

Further, the growing share of higher end models in total Company sales also contributed to the growth in Net Sales during the quarter.

In addition to these factors, Net Profit growth was helped by an easing of commodity prices, sales mix moving in favour of higher end models and favourable foreign exchange realisations. The Company continued its focus on Kaizen and cost reduction efforts.

Unit sales

Maruti Suzuki posted total sales of 226,729 units, representing 17.7 per cent growth during the first quarter of 2009-10. This included export of a record 29,314 units, representing a 134.7 per cent growth over the same period of the last fiscal.

Since its first shipment in January 2009, the A-star has led Company's exports. A-star's cumulative exports crossed 45,000 units mark in June 2009. The A-star has received overwhelming customer response in European markets such as Germany, United Kingdom, Netherlands, France and Belgium.

Domestic sales volume grew by 9.6 per cent to 197,415 units, led by new models A-star and Ritz as well as Alto, Swift, Swift DZire and WagonR. The Company launched Ritz in Petrol and Diesel engine options during this period.

During the quarter, Maruti Suzuki's volume in the domestic A2 segment grew by 17 per cent, while in the A3 segment the sales volume grew by 25.1 per cent as compared to sales in April-June 2008.

During the quarter the Company further strengthened its network. The Sales Network grew to 702 outlets covering 478 cities (end March 09: 681 outlets, 454 cities). The Service Network increased to 2779 service outlets covering 1324 cities. (end March 09: 2767 outlets, 1314 cities)