Maruti Suzuki recently posted a gain in net profits of 18% for the quarter ended in June 2011. In spite of a slow growth in the Indian auto industry, the company managed to record net profits to the tune of INR 549.2 crore, a growth of 18% against the INR 465.36 crores that it posted in the corresponding quarter, last year. The company registered net sales of INR 8,319 crores for the quarter.
The high levels of profit came following an 80% increase in their net profits in other incomes that brought in INR 180.1 crores during the quarter. This is in comparison to last year’s other income recorded at INR 100 crores for the corresponding quarter.
The company’s overall operations income during this quarter saw an increase of 2.7% at INR 8,529.3 crore, in comparison to the corresponding period last year, when it recorded operations income at INR 8,309.2 crore.
The company’s chief financial officer, Ajay Seth, said that the external environment was quite challenging from margins and volumes perspective. The increased prices of petrol were unprecedented, with the hike in interest rates also affecting the confidence of customers.
The company’s operating profit margin also saw an increase of 9.5%, in comparison to last year’s operating profit margin, which stood at 9.6%. Maruti also witnessed a drop in sales last month, following the 13 day strike at their Manesar facility because of labour union protests.