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Higher sales and cost reduction efforts helped Maruti Suzuki India (MSIL) report a consolidated net profit of ₹1,996 crore for the third quarter ended December 31, up 26 per cent over ₹1,587 crore it notched up in the same period previous year.
Net sales grew 13 per cent to ₹22,241 crore (₹19,655.5 crore).
According to analysts, the company has performed better than expected.
Also read: Subscription-based ownership of cars: Many enquiries, but conversion into sales, slow
The company sold 4,95,897 vehicles during the quarter, 13.4 per cent more than in the same period of 2019. Sales in the domestic market stood at 4,67,369 units, up 13 per cent, and exports at 28,528 units, were up 20.6 per cent, the company said in a statement.
However, for the nine-month period (April-December), the consolidated net profit declined 28 per cent to ₹3,148 crore against ₹4,355.3 crore in the corresponding previous period.
Net sales declined 20 per cent to ₹43,612 crore (₹54,517 crore).
Also read: Maruti increases prices of select models by up to ₹34,000
Nine-month volumes down
The company sold a total of 9,65,626 vehicles during the nine months, down 18 per cent compared to the previous period. Domestic sales stood at 9,05,015 units, down 17.8 per cent, and exports were 22 per cent lower at 60,611 units, MSIL said.
“These results have to be viewed in the context that in the financial year 2019-20, sales volume declined by 16 per cent for the company and about 18 per cent for the industry,” the company added.
According to ICICI Direct Research, Maruti’s third quarter performance on revenues and margin was broadly in line with the estimates. Higher-than-anticipated ‘other income’, however, boosted the profit after taxfor the quarter, it said.
Outlook positive on PVs
Mitul Shah, Head of Research at Reliance Securities, said MSIL has reported a subdued third quarter due to the sharp jump in commodity costs. “However, we expect the domestic passenger vehicle (PV) industry to record double-digit volume growth in FY2022, which would support MSIL’s business. Moreover, sales of premium products would come back as the situation normalises gradually from the pandemic,” he said.
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