Maruti Suzuki on Tuesday posted 4.1 per cent year-on-year gain in consolidated net profit at Rs 1,587.4 crore for the quarter ended December 31, 2019 on account of cost reduction efforts, lower operating expenses, lower commodity prices and reduction in corporate tax rate. The carmaker had reported profit after tax (PAT) of Rs 1,524.5 crore in the corresponding quarter last year.
Consolidated total revenue of the company increased 5.35 per cent to Rs 20,721.8 crore in Q3FY20 over Rs 19,680.7 crore in Q3FY19. The company sold 437,361 vehicles during October-December 2019, up 29.3 per cent on a year-on-year basis.
Other income decreased to Rs 784 crore in Q3FY19, against Rs 917.7 crore in the year-ago period.
Analysts at ICICI Securities had pegged Maruti's Q3FY20 profit after tax (PAT) at Rs 2,047 crore while operating income was expected to be Rs 22,346 crore.
Following the results, the automaker's stock slipped 2.26 per cent to Rs 6,982.20 as compared to 0.3 per cent dip in the benchmark S&P BSE Sensex.
On standalone basis, Maruti Suzuki's Q3 profit increased 5.1 per cent to Rs 1,565 crore while revenue was up 5.3 per cent to Rs 20,707.
In terms of operating performance, Maruti's earnings before interest, tax, depreciation, and ammortisation (EBITDA) stood at Rs 2102 cr, up 8.9 per cent YoY while Ebitda margin stood at 10.1 per cent.
The company said that cost reduction efforts and lower commodity prices, lower operating expenses, and lower corporate tax rate aided the margins while higher sales promotion expense, higher depreciation expense, and lower fair value gain on invested surplus acted as headwinds.
The company's tax expense decreased in Q3FY20 to Rs 441.6 crore from Rs 571 crore in the year-ago quarter.
The company sold a total of 437,361 vehicles during the quarter, higher by 2 per cent compared to the same period previous year. Sales in the domestic market stood at 413,698 units, up 2 per cent YoY. Exports were at 23,663 units.