Maruti Suzuki’s Q1 net profit declines 20.23 percent

July 24th, 2010 - 7:36 pm ICT by IANS  

New Delhi, July 24, (IANS) India’s largest car manufacturer Maruti Suzuki India Limited Saturday registered a 20.23 percent decline in its net profit in the first quarter to Rs.465.4 crore as compared to Rs.583.5 crore in 2009-10.

“The drop in net profit is due to higher commodity prices, increase in royalty and lower ‘other income’. In addition, income from exports to Europe fell due to weakening of the Euro,” the company said in a statement.

The auto giant’s net sales for the first quarter increased by 27 percent to Rs.8,050.7 crore as against Rs.6,340.2 crore in the corresponding period of the previous year.

During the quarter, the company registered a total sales of 283,324 units, representing 25 percent growth. The company exported 40,437 units and sold 242,887 units in the domestic market.

The company’s sales volume in A2 segment which is the largest contributor to the overall sales in the country grew by 16.2 percent during the quarter, while C segment sales volume growth of about 50.8 percent was attributed to the new car Eeco.

The manufacturer of Maruti Swift Dzire car in the A3 segment’s sales volume also grew by 45.2 percent, compared to the like period of 2009.

During the quarter, the company also opened 26 new sales outlet, which take the total to 828 outlets in 577 cities.

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