Maruti Suzuki Q3 results update!
Last updated: 28 Jan, 2021 | 10:39 am
Profit rises: Maruti Suzuki has reported a 24% YoY increase in net profit to Rs 1,941 crore, supported by festive season demand and a shift to personal mobility. Analysts had earlier estimated a net profit of about Rs 1,860 crore.
Revenue rises: Maruti Suzuki's revenue rose 13% on-year to Rs 23,458 crore. Analysts had earlier estimated revenue of about Rs 21,000 crore. The revenue rose on the back of a rise in domestic car sales. Maruti sold 4.95 lakh units in Oct-Dec 20 quarter, registering a 13.4% growth over the year-ago period. Exports rose 20.6% to 28,528 units.
Operating margin: EBITDA increased 6% on-year to Rs 2,227 crore, while EBITDA margin declined to 9.5% as against 10.2% last year. Analysts had earlier estimated a margin of about 10.8%. Higher sales volume, lower sales promotion expenses, improved capacity utilization and cost reduction efforts supported the operating profit, but unfavourable product mix, increase in commodity prices and adverse foreign exchange movement limited growth.
The company said that capacity utilisation in the quarter improved, which was reflected in the double-digit volume growth for the company. Passenger car sales have seen a rapid recovery in the last two quarters, aided by festive season push and pent-up demand. Maruti Suzuki benefitted from factors such as a shift to personal mobility amid the pandemic, and rise in demand for entry-level hatchbacks, robust rural demand on strong agri economy. Going forward, the company is well-positioned to take advantage of demand improvement, as the economy recovers further. Maruti Suzuki shares closed 3.5% down at Rs 7,589 on NSE amid a larger market decline. View Stock