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Maruti Suzuki Q1 Profits 49% High

Maruti Suzuki India on Thusday showed a growth of 49 percent over the last years with net profit of Rs.631.60 crores in the first quarter ended June, 2013, last year it was Rs.423.77 crores.
In a statement the company said the factors responsible are the cost reduction efforts, favourable foreign exchange rates and the Suzuki Powertrain India merger in the last fiscal.

However, the company's net sales (net of excise) came down by 5.1 per cent during the period i.e. from Rs.10, 529 crore to Rs. 9,995 crore in comparison to the last years. In terms of volumes the sales dropped by 10 per cent from 2.95 lakh units to 2.66 lakh units when compared to the first quarter of previous year. The company, however, said that they could be able to maintain its market share despite the fall in sales as the overall industry trend.

Even the exports decreased to 21,088 units from last year's exports of 32,632 units during the quarter. It is further added that the favourable foreign exchange rates during the quarter aided in improving export realisation and cushioned the impact on net sales.

Ajay Seth, Chief Financial Officer, MSIL, the addressing analysts stated that the quarter was challenging for the demand was low and the company would try to attract customers. The company showed a double digit growth in rural market, but sales fell in urban market, he added.
Bombay Stock Exchange recorded the shares of MSIL closed at Rs.1, 414.20 down by 0.12 per cent to previous close.