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Last Updated : Jan 28, 2020 02:34 PM IST | Source: Moneycontrol.com

Maruti's Q3 numbers show growth, but miss Street estimates; 5 key takeaways

The company posted a standalone net profit at Rs 1,565 crore against the CNBC-TV18 poll estimate of Rs 1,676 crore.

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Domestic automobile major Maruti Suzuki was in the green in the December quarter, but the numbers, released on January 28, missed Street estimates on net profit, revenue, EBITDA and EBITDA margin.

The company posted a standalone net profit at Rs 1,565 crore against the CNBC-TV18 poll estimate of Rs 1,676 crore. Standalone revenue was at Rs 20,707 crore against CNBC-TV18 poll estimate of Rs 21,847 crore.

Here are 5 key takeaways from the company’s quarterly earnings:

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Profit edges up

Standalone profit climbed by 5 percent to Rs 1,564.8 crore in Q3FY20 against Rs 1,489.3 crore in the corresponding quarter of the previous financial year. Sequentially, the numbers rose 15.18 percent. In the September quarter of FY20, Maruti had posted a standalone net profit of Rs 1,358.6 crore.

An uptick in margin

The company registered a 30 bps uptick in margin percentage at 10.1 percent, compared to 9.8 percent in Q3FY19.

Maruti attributed the improvement in the margin to cost reduction efforts, lower operating expenses, lower commodity prices and reduction in the corporate tax rate. However, these positives were partially offset by higher sales promotion expenses, higher depreciation, and lower fair value gains on invested surplus during the quarter.

Sales improve

The company claimed it sold 4,37,361 vehicles during the quarter, 2 percent more than it did in the year-ago period. Sales in the domestic market stood at 4,13,698 units, higher by 2 percent. Exports were at 23,663 units.

During the December quarter, the company registered net sales of Rs 19,649.1 crore, 3.8 percent more than in the same period the previous year.

EBITDA climbs

The company reported an 8.9 percent YoY rise in EBITDA to Rs 2,102 crore against Rs 1,931 crore in Q3FY19.

Other income drops

Maruti reported a 14.53 percent YoY fall in other income for the quarter ended December, at Rs 784 crore in Q3FY20 against Rs 917.3 crore in the same quarter of the previous financial year.

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First Published on Jan 28, 2020 02:34 pm
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