Maruti Suzuki's profit climbs 27% in Q1, but skids on expectations

Company, however, is confident about growth going ahead given the uptick in rural segment

India’s top car maker Maruti Suzuki posted a lower-than-estimated net profit of Rs 19.75 billion in the June quarter. The bottom line was 27 per cent higher than in the year-ago quarter, while analysts had pegged a growth of over 40 per cent.

Lower net profit was largely due to a steep fall in other income, which was down 60 per cent to Rs 2.7 billion. Higher tax outgo at Rs 9 billion, up 26 per cent, also pegged the net profit performance back. Given the miss, the stock ended the day losing 3.7 per cent. 

On the operating front,