Maruti Suzuki Q2 net profit up 42% at Rs 1,225 crore on robust sales

New Delhi: Country's top carmaker Maruti Suzuki India (MSI) Tuesday reported a 42.1 percent jump in net profit at Rs 1,225.56 crore for the September quarter, driven by strong sales growth, lower material cost and favourable foreign exchange.

The company had posted a net profit of Rs 862.54 crore during the same period last fiscal.

Net sales of the company rose 13.2 percent to Rs 13,574.8 crore during the second quarter as against Rs 11,996.33 crore during the same period year ago, Maruti Suzuki India (MSI) said in a statement.

Commenting on the results, MSI Chairman R C Bhargava said the company's performance was in line with what people were expecting.

"The reasons for high profit were higher volumes, favourable foreign exchange, commodity prices and benefits from cost reduction exercises," he said.

Going forward, festive season retail sales will be good in this and the next month, he added.

"Generally, December sales are different but there have been a lot of purchases in the last couple of years, he said.

Therefore the quarter should be good, he said, adding the company is maintaining its guidance of double digit growth in the current fiscal.

"The discount for this quarter was at Rs 19,500 per model on an average as compared to Rs 16,000 in the preceding period," Bhargava said.

On exports, he said the company expects it to be higher than last year.

During the second quarter, the company sold 3,53,335 vehicles, a growth of 9.8 percent, over 3,21,898 units in the second quarter of 2014-15.

The company's board, which met today, has approved scheme of amalgamation between the company and its seven wholly-owned subsidiaries.

The move would help in economisation and reduction of administrative and managerial costs, the company said.

Company's shares today ended at Rs 4,494.60 apiece on the BSE, up 2.44 percent from previous close.