Mumbai: Maruti Suzuki India Ltd on Thursday reported a 26.9% year-on-year rise in net profit to 1,975.3 crore in the June quarter (Q1), but still missed estimates. The country’s largest carmaker reported a 12.64% increase in net sales to 21,810.7 crore over the year ago period, it said in a regulatory statement on Thursday. A poll of 23 analysts by Bloomberg expected the local subsidiary of Suzuki Motor Corp. to post a profit of 2,268.5 crore on net sales of 22,466.5 crore.

The Q1 results, however, are not comparable to the previous year’s earnings because they are disclosed net of the goods and services tax (GST) introduced on 1 July 2017, Maruti Suzuki said in the filling.

Maruti Suzuki’s operating profit (earnings before interest and taxes) rose by 59.7% to 2,631.3 crore while total revenue from operations rose 13.6% to 22,459 crore.

The New Delhi-based firm sold 463,840 cars in the domestic market during Q1, a 25.9% increase over last year, given continued robust demand for models such as the Baleno hatchback, the Vitara Brezza, the new Dzire and the new Swift.

Maruti Suzuki’s operations are key for Suzuki as it provides the bulk of the Japanese automaker’s revenues, and has a market value of more than $43 billion, around 1-1/2 times that of its parent.

Suzuki this year announced an agreement with Toyota Motor Corp. for the Indian market, by which Suzuki will supply the Baleno hatchback and Vitara Brezza to Toyota, while Toyota will produce the Corolla sedan for Suzuki.

Maruti Suzuki shares were down 3.6% on Thursday, even as the benchmark Sensex breached the 37,000 mark for the first time.

Reuters contributed to this story.

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