Moneycontrol
Last Updated : Jan 25, 2018 08:36 PM IST | Source: Moneycontrol.com

Maruti Suzuki Q3 profit up 3%; revenue, operational nos in line; cuts royalty payment

Maruti Suzuki today said the board has approved a revision in the method of calculating royalty which would result in lower royalty payments for new model agreements starting the Ignis.

Country's largest car maker Maruti Suzuki India said it has reported a 3 percent growth year-on-year in profit at Rs 1,799 crore for December quarter and has cut royalty payment.

Profitability was hit by lower other income due to mark-to-market impact on the invested surplus and higher tax expenses. Profit for year-ago quarter stood at Rs 1,747.2 crore, the company said.

Revenue from operations for the quarter grew by 14.2 percent to Rs 19,283 crore compared to Rs 16,888 crore in year-ago, driven by double digit sales volumes.

The company sold a total of 4,31,112 vehicles during the quarter, a growth of 11.3 percent over the same period last year, with domestic sales growing 12.4 percent to 4,00,586 units.

Maruti Suzuki today said the board has approved a revision in the method of calculating royalty which would result in lower royalty payments for new model agreements starting the Ignis.

These changes would be implemented after approval by the board of parent company Suzuki Motor Corporation.

Operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) increased 22.1 percent to Rs 3,038 crore and margin expanded by 100 basis points to 16 percent compared to year-ago.

"The operating profit growth of 22.1 percent was on account of higher sales volume, cost reduction efforts, lower sales promotion expenses and forex benefit, partially offset by adverse commodity prices," Maruti said.

Numbers were largely in line barring bottomline. Profit was estimated at Rs 2,033 crore and operating income at Rs 3,012 crore with margin at 15.5 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Other income during the quarter was lower by 59 percent year-on-year at Rs 244.9 crore while tax expenses jumped 50.3 percent to Rs 813.1 crore compared to year-ago.
First Published on Jan 25, 2018 03:50 pm

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