Maruti Suzuki posts 3.4% rise in Q2 net profit at Rs 2,484.3 cr, but margin dips

Automobile major Maruti Suzuki on Friday reported 3.4 percent increase in its September quarter net profit at Rs 2,484.3 crore against R 2,401.5 crore posted during the same period last year.

The company’s revenues rose 21.8 percent at Rs 21,768 crore against Rs 17,869 crore year on year.

On an operating level, the earnings before interest, taxes, depreciation and amortisation rose 21.1 percent at Rs 3,677 crore against Rs 3,036 crore year on year. The operating margin came in at 16.9 percent against 17 percent in the September quarter in 2016.

The company further said that its cost reduction initiatives and lower discount were reasons for margin movement along with economies of scale.

Meanwhile, adverse commodity prices and higher promotional expenses had impacted margins, it added.