Automobile company Maruti Suzuki 's first quarter (April-June) profit beat analysts' expectations on Tuesday, growing 23 percent to Rs 1,486.2 crore compared with Rs 1,208.1 crore in year-ago period, driven majorly by other income. "Profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation, though adverse foreign exchange movement reduced bottomline growth to some extent," the country's largest car maker said in its filing. Revenue growth during the quarter was lower than estimates, rising 11.6 percent to Rs 14,927.3 crore compared with corresponding period of last fiscal due to slow volume growth. Volume growth slowed down from 14 percent in Q1FY16 to 2.1 percent in Q1FY17, impacted by production loss of 10,000 units due to fire at vendor Subros plant. The company sold 3.48 lakh vehicles in June quarter against 3.41 lakh units in year-ago period. Domestic sales grew by 5.4 percent to 3.22 lakh units while exports declined 27 percent on yearly basis. Profit was estimated at Rs 1,276 crore on revenue of Rs 15,081 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18. Other income in April-June quarter shot up 134 percent to Rs 483.3 crore while other expenses increased 16.2 percent to Rs 2,007.2 crore on yearly basis. Operational performance matched analysts' estimates. Operating profit grew by 2.25 percent year-on-year to Rs 2,215.7 crore but margin contracted by 140 basis points to 14.8percent in the quarter ended June 2016. Higher employee cost & other expenses (including marketing expenses) and yen appreciation hit margin growth. Depreciation expenses during the quarter declined 4.9 percent to Rs 638.9 crore while employees expenses jumped 23.8 percent to Rs 579 crore on annual basis. At 14:36 hours IST, the scrip of Maruti Suzuki India was quoting at Rs 4,535.45, down Rs 15.15, or 0.33 percent on the BSE.
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