Maruti Suzuki India Ltd on Wednesday posted 12.6% on-year growth in its net profit for the third quarter ended December. Revenue from operations during the quarter rose 15.5% on year to Rs 36,802 crore.
A robust increase in volumes, a favorable mix of higher-margin products and higher non-operating income supported the earnings by offsetting the impact of higher advertising and discount spending.
The automaker’s standalone net profit for the October-December period came in at Rs 3,525 crore, against Rs 3,130 crore in the year-ago period.
During the quarter, India’s largest car maker sold 5.66 lakh vehicles, a 13% increase from the year-ago period. The volume growth was aided by strong growth in utility vehicle sales as well as sales to other OEMs. Domestic volumes came in at 4.67 lakh units, while exports were at an all-time high of 99,220 units.
On the operating profit front, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), rose around 14% to Rs 4,457.3 crore. At the same time, the operating profit margin, or EBITDA margin, contracted to 11.6% from 11.7% in the year-ago period, as per Autocar Professional calculations.
For the second quarter, Maruti Suzuki had reported a 17.4% decline in its net profit on a year-on-year basis, with revenue remaining flat. This was due to a one-time cost related to deferred tax, decreased sales volume and higher discounting.
Meanwhile, Maruti Suzuki’s board has extended the tenure of Hisashi Takeuchi’s term as managing director and chief executive officer till March 31, 2028.
The automaker recently unveiled its first electric car – e-Vitara. The model is set to go for production at the automaker’s plant in Gujarat during March-April and will be exported to Europe, and Japan, before being aggressively marketed in India. A large part of the production of e Vitara is likely to go for exports initially.