India’s largest carmaker reports a 10.8% year-on-year decline in net profit despite a 36% rise in net sales for the June quarter.
Maruti Suzuki India posted a standalone net profit of $351.9m for the quarter ended June 30, down from $400.3m a year earlier. The decline occurred despite net sales surging 36% to $5.99bn, driven by a 29.3% increase in overall sales volume.
Revenue from operations rose to $6.29bn from $4.63bn in the same period last year. However, total expenses climbed to $5.99bn, with the cost of materials consumed jumping to $3.84bn from $2.63bn. Earnings per share fell to $1.28 from $1.43.
Domestic sales of small cars and SUVs grew 34.1% and 44.6%, respectively, while exports increased 28.6%. The company also approved $67.2m for four compressed biogas projects as part of a new initiative.