Maruti Suzuki, the country’s largest automaker, reported a net profit of Rs 2,240.4 crores in the July-September period, posting a decline of 9.8 per cent due to the higher commodity costs and a weaker rupee.
Maruti Suzuki India Ltd.’s quarterly profit declined for the first time in more than four years as the company had earlier reported a net profit of Rs 2,484.30 crores in the corresponding quarter of the previous fiscal year. The total revenue during the quarter under review increased 3 per cent year-on-year to Rs 22,433 crores.
Operating income or the EBITDA (earnings before interest, tax, depreciation and amortisation) fell 7 per cent on a yearly basis to Rs 3,431 crore during the quarter.
The carmaker’s profit number was down as sales volumes for the quarter declined 1.5 per cent to 4,84,848 units. Operating EBIT for the quarter fell 9.5 per cent to Rs 2,710.10 crores whereas the operating EBIT margin fell to 12.6 per cent in September quarter from 14 per cent last year.
According to the company’s statement, the fall in numbers was due to adverse foreign exchange variation, commodity prices and higher sales promotion expenses. The margin fall was restricted partially by cost reduction efforts, the company added. The company’s exports free fell 15 per cent (Y.o.Y) to 29,448 units.
Maruti Suzuki Chairman RC Bhargava said, “Rising crude oil and fuel prices impacted sales.”
Bhargava also added that the higher upfront insurance payment of nearly Rs 9,000 on an average also weighed down the volumes. “We will continue to make efforts to deliver a volume growth of 10 per cent on a yearly basis,” Bhargava stated.