India's largest passenger vehicle manufacturer, Maruti Suzuki India, reported a one percent year-on-year growth in Q2 FY21 standalone profit on October 29. However, a 16 percent volume growth pushed revenue 10 percent higher on a year-on-year basis (YoY).
Standalone profit increased to Rs 1,371.6 crore in the quarter ended September 2020, against Rs 1,358.6 crore in the same period last year. In Q1 FY21, the company had posted a loss of Rs 249.4 crore.
Profit was impacted due to a decline in other income (down 34.5 percent YoY) and higher tax cost (up 76.3 percent YoY). Also, the net profit in Q2 FY20 was higher due to mark-to-market gains on the invested surplus and lower tax provision, company reasoned.
But the sequentially the performance was better in Q2 FY21 on the back of some demand recovery and gradual improvement in supply conditions, it said.
Revenue during the quarter jumped 10.4 percent to Rs 18,744.5 crore compared to the year-ago period.
Maruti sold 3.93 lakh units in July-September quarter 2020, reporting a massive 413 percent growth over the previous quarter and 16 percent over the year-ago period.
Sales in the domestic market stood at 3,70,619 units, higher by 18.6 percent and exports were at 22,511 units, lower by 12.7 percent, the company said.
At the operating level, its earnings before interest, tax, depreciation and amortisation (EBITDA) surged 20.4 percent to Rs 1,933.6 crore and margin expanded 80 bps YoY to 10.3 percent in September ended quarter.
Higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts supported the operating profit, but increase in commodity prices and adverse foreign exchange movement limited growth, Maruti said in its BSE filing.
Numbers missed on all parameters. Profit was estimated at Rs 1,522 crore on revenue of Rs 19,109 crore and EBITDA was expected at Rs 2,100 crore with margin at 11 percent for the quarter, as per the average of estimates of analysts polled by CNBC-TV18.
As a result, the stock corrected 1.67 percent to Rs 7,062.35 on the BSE at 14:27 hours IST.