Maruti Suzuki net rises 24% on higher sales

Maruti Suzuki, India’s biggest car maker, on Thursday posted a 24.1 per cent year-on-year rise in the December quarter standalone net profit at Rs 1,941.4 crore, thanks to higher festive sales and preference for personal mobility amid the pandemic that raised the demand for its small cars.

In the corresponding quarter of the previous financial year, Maruti Suzuki’s net profit stood at Rs 1,564.8 crore.

The maker of popular models like Swift and Vitara Brezza reported a 13.3 per cent YoY rise in revenue at Rs 23,457.8 crore against Rs 20,706.8 crore in Q3FY20.

The revenue numbers were slightly below the market expectations. A CNBC-TV18 poll had estimated the revenue numbers to the tune of Rs 23,655 crore.

The company's earnings before interest, tax, depreciation and amortisation, or Ebitda, grew 5.9 per cent YoY to Rs 2,226 crore against Rs 2,102 crore in the corresponding quarter last year.

The Ebitda margin for the quarter stood at 9.5 per cent against 10.1 per cent a year ago.

Maruti Suzuki said its operating income rose on higher sales volume, cost cuts and lower sales promotion. But the increase was partially offset by an increase in commodity prices and adverse foreign exchange movement.

The company sold a total of 4.95 lakh vehicles during the December quarter, higher by 13.4 per cent compared to the same period in the previous year.

Sales in the domestic market stood at 4.67 lakh units, growing by 13 per cent. Exports stood at 28,528 units, higher by 20.6 per cent.