Maruti Suzuki India, India’s largest carmaker declared a 4.4 percent increase in its net profit at Rs 1,556.4 crore for the first quarter to June.
The company reported a net profit of Rs Rs 1,490.9 crore for the same period in the previous fiscal year. Net sales of Maruti Suzuki India rose 16.7% to Rs 17, 132.4 crore for the quarter compared to Rs 14,645.5 crore in 2016.
The company during April-June, sold a total of 3,94,571 vehicles, including 26,140 in overseas markets.
A statement released by the Maruti Suuzuki India said, “Growth in volumes, higher no-operating income, cost reduction and favourable product mix have contributed to increase in profits.”
The statement further read, “The costs were impacted by sales promotion, marketing expenses and higher commodity prices.”
The statement further read that that during the quarter, compensation for dealers due to the tax loss incurred on vehicle stock at the time of switchover to GST added to the losses.