Maruti Q3 net up 18% on higher volumes

Shares of Maruti Suzuki India closed at Rs 3,685.20 per share, up 2.12 per cent from their previous close on the Bombay Stock Exchange.

The country’s largest car maker Maruti Suzuki on Tuesday reported a 17.8 per cent growth in net profit at Rs 802.16 crore for the third quarter ended December 31, 2014, on the back of higher volumes, material cost reduction initiatives and favourable foreign exchange rates.

The company had posted a net profit of Rs 681.15 crore in the corresponding period of the last financial year. Higher volumes, material cost reduction initiatives and favourable foreign exchange contributed to the bottomline during the quarter,” the company said in a statement.

Net sales during the quarter stood at Rs 12,263.14 crore, which is an increase of 15.5 per cent over Rs 10,619.68 crore posted in the same period previous fiscal.

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Volume sales in the period under review were up by 12.4 per cent at 3,23,911 units compared to 2,88,151 units in the year-ago period. Of this exports comprised 28,709 units. This is a growth of 43.8 per cent over 19,966 units sold in the same period last fiscal.

Speaking to analysts, Ajay Seth, chief financial officer, MSIL said that market conditions were still weak and it may take some more time for demand to recover.

“The situation indicates that we have to support sales with incentives …The quantum of average discounts during the quarter across models was around Rs 21,000 per vehicle,” he said.

Seth said the withdrawal of excise duty concessions and resultant price increase has impacted sales, particularly in the entry level segment.

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Shares of Maruti Suzuki India closed at Rs 3,685.20 per share, up 2.12 per cent from their previous close on the Bombay Stock Exchange (BSE).

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