Moneycontrol Bureau
Maruti Suzuki's July-September quarter matched analysts' expectations on bottomline and topline front while operational performance was ahead of estimates. Country's largest car maker's profit shot up 42 percent year-on-year to Rs 1,225.6 crore, driven by strong revenue and operational growth. Profit growth was limited due to lower other income and sharp rise in tax cost.
"Higher volumes, material cost reduction initiatives and favourable foreign exchange contributed significantly to bottomline growth during the quarter," Maruti said in its filing to exchanges.
Revenue increased 13 percent to Rs 13,934 crore in quarter ended September 2015 compared to Rs 12,315 crore in same quarter last year, boosted by strong sales volume growth.
Car sales in September quarter increased by 9.8 percent year-on-year and 4 percent quarter-on-quarter to 3.53 lakh units, driven by new launches SCross, Ciaz and Alto ATM.
Profit was estimated at Rs 1,240 crore on revenue of Rs 13,984 crore during the quarter with operating profit growth of 48.1 percent and margin expansion of 370 basis points, according to analysts polled by CNBC-TV18.
Realisation per vehicle sold during the quarter increased 2.9 percent (up 0.25 percent sequentially) to Rs 3.94 lakh compared to Rs 3.83 lakh in same quarter last year.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) during the quarter surged 49 percent to Rs 2,269 crore and margin expanded by 390 basis points to 16.3 percent compared to year-ago period.
In same period, other income declined 24.7 percent to Rs 137.1 crore. Finance cost was down 49 percent to Rs 17.8 crore while tax expenses shot up 126.6 percent to Rs 493.71 crore compared to year-ago period.
At 14:38 hours IST, the scrip of Maruti Suzuki India was quoting at Rs 4,468, up Rs 80.25, or 1.83 percent on the Bombay Stock Exchange.Mayuresh Joshi of Angel Broking says the operational efficiency, low commodity prices have worked well for Maruti. Joshi remains positive on the stock and could improve the target price for the stock.The ongoing festival season as well as new launches will help volume growth, Prayesh Jain of IIFL said. He expects accelerated revenue and margin growth for the company.Priya Ranjan of Systematix Shares & Stocks remains positive on the stock and said one will have to wait and see how Maruti’s new launch, Baleno fares and volume growth in next 3 to 6 months.
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