New Delhi, July 27: Maruti Suzuki has reported a 4.4 per cent increase in net profit at Rs 1,556.40 crore for the first quarter ended June 30. The country's largest car manufacturer had reported a net profit of Rs 1,490.9 crore for the same period of the previous fiscal.

Net sales, however, rose 16.7 per cent to Rs 17,132.4 crore for the quarter under review compared with Rs 14,654.5 crore a year earlier.

The profit figure for the reporting quarter missed analysts' estimates and led to the stock skidding to Rs 7,542.80 in intra-day trading on the Bombay Stock Exchange. It rallied later to close at Rs 7,592.30 70 compared with yesterday's close of Rs 7,577.95.

Maruti, which accounts for the bulk of Japanese car-maker Suzuki Motor's revenues, sold a total of a little more than 3.94 lakh cars during the quarter, an increase of 13.2 per cent over the year-ago period.

However, an increasing cost curve besides a higher forex outgo on royalty to its parent company saw the company's profit taking a hit.

"Maruti Suzuki reported lower-than-expected results owing to a 57.3 per cent year-on-year increase in other expenditure led by unfavourable forex impact and sharp drop in other income," said Yaresh Kothari of Angel Broking.

The company benefited from price hikes and better sales of the Swift, Dzire and the Ertiga.

During the reporting quarter, Maruti had to absorb a one-time payment made to dealers as compensation for tax loss incurred on vehicles in stock during the transition to the GST.

Maruti said its profit was also hit by higher commodity prices and costs incurred on sales promotion and marketing. The automaker also incurred a deferred tax expense of Rs 185 crore.

Idea loss

Telecom operator Idea Cellular today posted a loss of Rs 815.9 crore in the first quarter ended June 30, impacted by sustained pressure from disruptive tariffs of Reliance Jio.

This is the third straight quarterly loss for the Aditya Birla group firm as it has not been able to recover from the pressure of an aggressive tariff war triggered by Mukesh Ambani-led Reliance Jio.

Idea Cellular had posted a profit of Rs 217.1 crore in the same period a year ago.

"The upheaval in the Indian wireless industry continued in the first quarter of financial year 2018, despite the new entrant slowly migrating from 'free services' to 'paid services' but with heavily discounted unlimited voice and data pricing plans," Idea said in a statement.

Total revenue of Idea also declined by about 14 per cent to Rs 8,181.7 crore in the reported quarter from Rs 9,552.4 crore it posted in the corresponding period of 2016-17.