Led by better sales, foreign exchange gains and reduction in costs, Maruti Suzuki India Ltd (MSIL) on Thursday reported a 21 per cent increase in net profit at ₹762.28 crore for the first quarter ended June 30 against ₹631.30 crore a year ago.

“We started the quarter with low consumer sentiments, high inflation and other economic factors that affected the economy last year, but after the elections, consumer sentiments turned positive,” Ajay Seth, Chief Financial Officer, said.

Net sales of the country’s largest passenger carmaker rose 11 per cent to ₹11,673.51 crore during the period against ₹9,995.12 crore in April-June 2013, the company said.

It sold 2,70,643 units during the quarter, up 10 per cent against 2,45,346 units it sold a year earlier.

The company said there was an impact of ₹150 crore in the first quarter due to foreign exchange gains and it also made significant progress through its localisation programme, thereby, reducing import content.

Import content “Our total import content as on March 31, 2014 as percentage of net sales was at 16 per cent, which has significantly come down from around 26 per cent since 2010-11 onwards,” Seth told analysts after declaring the numbers.

The current traction seen in sales is mostly due to positive sentiments driven by the new Government.

However, the real growth would come only when there is all around economic growth with investments coming into the country and jobs being created, he added.

On future expectations, Seth said MSIL expects an early double digits growth for the domestic market, while exports are expected to remain flat.

New director Meanwhile, the company said that Shigetoshi Torii has been appointed as the Whole-time Director designated as Director (Production) on Thursday, subject to the approval of shareholders in the ensuring annual general meeting. Masayuki Kamiya has resigned as a Director on the board of the company due to withdrawal of nomination by Suzuki Motor Corporation, Japan, it said.

Osamu Suzuki, Chairman and CEO, Suzuki Motor Corporation, also called on Prime Minister Narendra Modi on Thursday.

‘It was a courtesy call’, the PM Office said.

MSIL’s shares closed at ₹2,524.50 on the BSE on Thursday, down 1.70 per cent from the previous close.

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