Financial reports of Maruti Suzuki for the first quarter of fiscal year 2012-13

The sales depicted in the financial results of Maruti Suzuki for the first quarter (Apr-Jun) of the fiscal year 2012-2013 contradict the net profits made. Net sales during the first quarter show a significant rise over last year's sales during the same duration of time. In Q1 of fiscal 2011-12, the company recorded net sales of Rs. 82,566 Mn, whereas this year it has risen by 27.5 per cent to Rs. 105,292 Mn. However, the net profits of the Indian automobile giant have gone down this year by 22.8 per cent to Rs. 4,238 Mn as compared to previous year’s first quarter profits of Rs. 5,492 Mn.

The total units sold in the domestic market have witnessed a 5 per cent rise with 263,264 units sold in the first quarter of fiscal 2012-13 as compared to domestic sales of 250,683 units in first quarter of fiscal 2011-12. Maruti Suzuki’s export figures have also improved which are up by 5.8 per cent from the previous year’s first quarter. In the first quarter of this fiscal, the company exported 32,632 units as against 30,843 units during the same period last year. The overall sales volumes are 295,896 units, a 5.1% increase from last year's first quarter sales of 281,526 units.

These figures were recently approved by the board of directors. The improvement recorded in net sales is due to increase in number of units sold, better & improved products and growth in the company’s export. However, net profits of the JV have been adversely impacted by the frequent currency movements, especially the adverse exchange rate of the Yen & rupee. The Indian consumers’ persistent demand for diesel vehicles has also made petrol cars suffer a downfall in sales volume during the recent quarter.