The country's leading carmaker Maruti Suzuki's net profit for the October-December quarter stood at Rs 1,564.8 crore, posting a 5.1 per cent growth compared to the same period the previous year. The company has attributed cost-reduction efforts, lower operating expenses, and a reduction in the corporate tax rate for a rise in its Q3 profit.
The profit rose "on account of cost reduction efforts, lower operating expenses, lower commodity prices and reduction in the corporate tax rate, partially offset by higher sales promotion expenses, higher depreciation, and lower fair value gains on invested surplus," the company said in a statement.
In Q3, Maruti saw 2 per cent growth compared to the same period previous year in terms of the total vehicle sale at 437,361 units. Sales in the domestic market grew by 2 per cent YoY at 413,698 units, while the company exported 23,663 cars. During the quarter, Maruti registered 3.8 per cent growth YoY in net sales at Rs 19,649 crore.
Overall in the past three quarters, the company has seen a 16.1 per cent decline YoY in sales at 1,178,272 units. Sales in the domestic market stood at 1,100,698 units (lower by 16.9 per cent), while the company exported 77,574 units.
The company's net profit in the period declined 23.6 per cent YoY, while total sales plunged 12.5 per cent YoY to Rs 54,504. A major reason for overall declining revenue is believed to be "lower sales volume, higher sales promotion expenses and higher depreciation, partially offset by cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate".
Following the earnings update, the shares of Maruti Suzuki fell 1.4 per cent intraday to the day's low of Rs 7,040.05 on BSE today.
Edited by Manoj Sharma