Maruti Suzuki's third quarter profit increased 47.5 percent to Rs 1,744.5 crore and revenue rose 12.4 percent to Rs 16,623.6 crore compared with year-ago period.
Country's largest car maker Maruti Suzuki said profit in October-December quarter grew by 47.5 percent year-on-year to Rs 1,744.5 crore. It was largely driven by other income and partly by operational & revenue growth.
"Increase in share of higher segment models, lower sales promotion & marketing expenses, cost reduction efforts and higher non-operating income contributed to increase in profits. This was partially offset by increase in commodity prices and adverse foreign exchange movement during the quarter," the company says in its filing.
Net sales (excluding excise duty and other operating income) increased 12.4 percent to Rs 16,623.6 crore compared with year-ago period and total income from operations rose 13 percent to Rs 19,173.1 crore.
The company sold 3.87 lakh vehicles in Q3, a growth of 3.5 percent over same period previous year, which included exports of 30,748 units, Maruti says.
Volume growth moderated to 3.5 percent YoY against 18 percent YoY in Q2 due to mini and compact segment getting hit due to demonetisation.
Realisation during the quarter increased 2.1 percent to Rs 4.35 lakh per unit compared with Rs 4.26 lakh per unit in previous quarter.
Maruti says it has strong product portfolio going forward and sees favourable interest rates.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) was up 16 percent at Rs 2,489 crore and margin expanded by 50 basis points to 15 percent (but contracted by 230 basis points sequentially), impacted by higher discounts and raw material cost.
Overall earnings were stable despite demonetisation. Profit was estimated at Rs 1,776 crore on revenue of Rs 19,173 crore and operating profit was expected at Rs 2,578 crore with margin at 15.5 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Other income boosted bottomline, rising 144 percent to Rs 592 crore compared with Rs 242.5 crore in same quarter last year.
At 13:36 hours IST, the stock was quoting at Rs 5,779.75, up Rs 40.60, or 0.71 percent amid high volumes on the BSE.
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