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Several factors, including high commodity prices and weak sales during the festival season, drove down Maruti Suzuki India Ltd’s (MSIL) third-quarter net profit to ₹1,489 crore. This marks a 17 per cent decline year-on-year (YoY) from the ₹1,799-crore profit seen in the corresponding period last fiscal year.
However, MSIL’s total revenue from operations rose 2 per cent YoY to ₹19,668 crore in the October-December quarter (₹19,283 crore).
“While the Society of Indian Automobile Manufacturers (SIAM) had forecast a passenger vehicle domestic market growth of 8-10 per cent for the year, the industry could grow only 4.4 per cent in the first three quarters,” MSIL said in a statement.
The Q3 results have to be viewed in the context of particularly weak market conditions, it added.
As of December 31, 2018, the company had sold 1,89,264 units, against 1,89,400 as of December 31, 2017.
The latest quarter also witnessed adverse commodity prices and foreign exchange rates, higher marketing and sales expenditure and higher resource costs.
These impacted profitability and capacities that were originally expected to boost growth, the company said.
Passenger vehicle exports declined 8.5 per cent owing to weakness in global markets, trade barriers in some markets, and the devaluation of most currencies against the US dollar, MSIL said.
On Friday, MSIL shares closed 7.5 per cent down at ₹6,513.40 on the NSE.
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