Maruti Suzuki posts 26% rise in Q3 profit at Rs 1,997 crore; revenue up 13%

Topics Markets | Maruti Suzuki

Auto major Maruti Suzuki, on Thursday, reported a 25.8 per cent year-on-year growth in consolidated profit at Rs 1,996.7 crore for the December quarter of FY21 (Q3FY21) while revenue rose 13.26 per cent to Rs 23,471.3 crore. In comparison, the company had posted revenue of Rs 20,721.8 crore and profit of Rs 1,586.9 crore in the corresponding quarter of last year.

On a standalone basis, Maruti's revenue came in at Rs 23,458 crore while profit after tax (PAT) stood at Rs 1,941.4 crore.

Analysts at HDFC Securities had expected Maruti's revenues to grow by 14 per cent YoY to Rs 23,700 crore, and PAT to grow 15 per cent YoY to Rs 1,810 crore. READ EXPECTATIONS HERE

Sales performance

During the quarter, Maruti sold a total of 4.95 lakh vehicles, up 13.4 per cent on YoY basis. Sales in the domestic market stood at 4.67 units, higher by 13 per cent YoY. Exports were at 28,528 units, up by 20.6 per cent.

Operating performance

Maruti's Q3 earnings before interest, tax, depreciation, and ammortisation (Ebitda) came in at Rs 2,226 crore, up 6 per cent YoY, while Ebitda margin for the quarter stood at 9.5 per cent against 10.1 per cent reported in Q3FY20.

The company said that improved capacity utilisation, lower sales promotion expenses, cost reduction efforts and higher value gains on invested surplus contributed positively to the margin movement. On the other hand, adverse commodity prices, unfavorable product mix, and adverse foreign exchange fluctuation had a negative impact.

Meanwhile, Maruti's realisations for the quarter under review came in at Rs 4.73 lakh/unit while its tax expense grew to Rs 508.4 crore from Rs 441.6 crore in the year-ago quarter.

Stock reaction

Maruti Suzuki's stock slid 3.6 per cent from the day's high to Rs 7,687.05 after the announcement of the quarterly results. At 1:58 PM, the stock was trading 1.86 per cent down at Rs 7,720 as compared to 1.27 per cent decline in the benchmark S&P BSE Sensex.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel