Maruti Suzuki India (MSI) on Monday said its consolidated net profit surged over two-fold to Rs 2,525 crore for the first quarter ended on June 30, 2023, riding on the back of robust sales, improved realisation, cost reduction efforts and higher non-operating income.
The country's largest carmaker reported a net profit of Rs 1,036 crore in the same period of 2022-23. Total revenue from operations increased to Rs 32,338 crore in the April-June quarter from Rs 26,512 crore in the year-ago period, according to an exchange filing by the company.
The company said its board approved the termination of the contract manufacturing agreement with Suzuki Motor Gujarat (SMG) and exercising the option to acquire the shares of SMG from Suzuki Motor Corporation (SMC) subject to all legal and regulatory compliances including minority shareholder's approval. SMG, which is a wholly-owned subsidiary of SMC, currently has an installed production capacity of 7.5 lakh units per annum.
It supplies all its units exclusively to MSI. The auto major said it expects to complete the transaction by March 31, 2024.
It noted that the mode of acquisition including consideration to be paid to SMC shall be decided in a subsequent board meeting. MSI said it sold a total of 4,98,030 vehicles in the first quarter, up 6.4 per cent, as compared with the same period of the previous year.
Sales in the domestic market stood at 4,34,812 units, up by 9.1 per cent over that in the first quarter of 2022-23 fiscal. Exports stood at 63,218 units in the April-June quarter, as compared with 69,437 units in the year-ago period.
MSI noted that shortage of electronic components in the first quarter resulted in production loss of over 28,000 vehicles.
Pending customer orders stood at about 3,55,000 units at the end of the first quarter, it stated.
Shares of the company ended 1.56 per cent up at Rs 9,819.55 apiece on the BSE.