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Maruti Suzuki India, the largest car maker in the country reported a dismal quarterly result with a net profit plummeting 17 per cent year-on-year to Rs 1,489.3 crores for the quarter ended on December 31, due to the effects of high commodity prices and fluctuating forex rates.
Maruti Suzuki India in its regulatory filing said, “Adverse commodity prices & foreign exchange rates, higher marketing & sales expenditure and higher costs in resources and capacities which were earlier planned to enable a higher estimated growth impacted the profitability.”
The company, however, reported a 2 per cent growth in revenue from operations to Rs 19,668.3 crore in the quarter under discussion. According to the company, realisations per car by 2.6 per cent to Rs 4,58,850 in Q3FY19 compared to Rs 4,47,290 in the same period quarter a year ago.
Maruti’s EBITDA (earnings before interest, tax, depreciation and amortisation) dropped down by 36.4 per cent year-on-year to Rs 1,931.3 crore, posting it as one of the worst quarter in recent times. The EBITDA margin also contracted to 9.8 per cent as against 15.8 per cent in the corresponding quarter previous year.
