Maruti Suzuki Q3 net profit jumps 3 per cent to Rs 1,799 crore; Swift, Baleno top selling cars

The country's largest carmaker Maruti Suzuki India posted 2.96 per cent rise in net profit at Rs 1,799 crore for the October-December quarter of the current financial year, hit by higher input costs although the firm had a good showing in compact and utility vehicle sales. The company's net profit was Rs 1,747.2 crore for the same period of the previous financial year.

Its total income during the quarter under review stood at Rs 19,528.1 crore compared to Rs 19,793.3 crore in the year-ago period. However, total vehicles sales grew 11.3 per cent to 4,31,112 units during the period. While domestic sales rose 12.4 per cent to 4,00,586 units, 30,526 units were exported, MSI said in a statement.

Sales of compact vehicles, such as the Swift and Baleno, rose 26.9 per cent, while sales of utility vehicles like Ertiga and Vitara Brezza soared 28.1 per cent. The company said its board in its meeting today discussed and approved a revision in the method of calculating royalty which would result in lower royalty payments for new model agreements starting with the Ignis.

This would be implemented after approval by the Board of Suzuki Motor Corporation, the statement added. The Indian subsidiary of Suzuki accounts for a bulk of the Japanese automobile major's revenues. MSI said its profit increased by 2.96 per cent only due to increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year.

Operating profit increased by 26.7 per cent. The firm has said it will launch its first electric car by 2020.