December 02, 2008

Maruti profit down in Q1 despite sales increase

It is reported that Maruti Suzuki India Limited’s, maker of half the cars sold in India, first quarter profit that fell as lower taxes lured customers to its fuel efficient hatchback models.

Maruti Suzuki India Limited net income in the quarter ended June down by 6.6% to INR 4.66 billion from INR 4.99 billion a year earlier, the New Delhi based automaker said in a statement today. That beat the INR 4.39 billion median estimate in a Bloomberg survey of 11 analysts.

As per report, Maruti boosted car sales 13.5% in the Q1 as record fuel prices and lower taxes attracted more customers to its mini cars and hatchbacks. Still, auto demand in the world's second fastest growing major economy may slow this year as the central bank increase rates to cool 13 year high inflation.

The reported added that sales at the Indian unit of Suzuki Motor Corporation gained to INR 47.3 billion from INR 39.1 billion. Maruti spent INR 34.8 billion on raw materials including steel and components in the quarter up by 19% from a year earlier.

The automaker, 54% owned by Japan's Suzuki increase 4.51% to INR 647.15 in Mumbai.