Maruti Q3 net rises 26%, company flags base effect

Input costs hit profit, revenue rises 13%

India’s largest carmaker Maruti Suzuki on Thursday posted a 26% increase in consolidated net profit to ₹1,996.7 crore for the quarter ended December, mainly on the back of higher sales.

However, the company said “these results have to be viewed in the context that in the previous year FY2019-20, sales volume declined by 16% for the company and about 18% for the industry”. Total revenue from operations rose 13% to ₹23,471.3 crore in the quarter under review.

Maruti sold more than 4.95 lakh vehicles in the quarter, an increase of 13.4%. Mitul Shah, head of Research, Reliance Securities, said Maruti had “reported subdued Q3 performance due to a sharp jump in commodity cost. However, we expect the domestic PV industry to record double-digit volume growth in FY22, which would support MSIL’s business.”

Source: Read Full Article