Maruti Suzuki Q1 profit slumps 27% YoY to Rs 1,436 crore on 18% drop in volumes

NEW DELHI: India’s largest carmaker Maruti Suzuki on Friday reported a 27.3 per cent year-on-year (YoY) drop in net profit at Rs 1,435.50 crore for the June quarter on weak volumes and higher depreciation expenses.

Analysts in an ET NOW poll had projected a profit of Rs 1,350 crore.

Net sales for the quarter fell 14.1 per cent to Rs 18,735.20 crore on a yearly basis.


The company sold a total of 4,02,594 vehicles during the quarter, down 17.9 per cent. Sales in the domestic market stood at 3,74,481 units, down 19.3 per cent. Exports stood at Rs 28,113 units.

The company said that higher sales promotion expenses, depreciation and low capacity utilisation weighed on the numbers. Lower advertisement expenses, cost reduction efforts, favourable exchange movement and favourable commodity prices, were helpful.


The auto major’s margins for the quarter came in at 10.4 per cent against ET NOW poll estimate of 10.2 per cent. Ebitda stood at Rs 2,047.80 crore. Analysts had projected at an Ebitda of Rs 1,955 crore.

Total expenditure declined to Rs 18,.645.30 crore during the quarter ended June 30 against Rs 19,848.80 crore in the same period last year.

Employee benefit expense increased by 12.27 per cent to Rs 859.10 crore. Depreciation and amortisation expense jumped to Rs 918.60 crore from Rs 719.80 crore during the same period.

Shares of the automaker shot up in a knee-jerk reaction to the announcement. Later the scrip was trading 1.11 per cent higher at Rs 5,824.20 on BSE.