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Informist, Tuesday, Oct. 29, 2024

 

--Maruti Suzuki Jul-Sept net profit INR 30.69 bln 

--Analysts saw Maruti Suzuki Jul-Sept net profit INR 38.09 bln 

--Maruti Suzuki Jul-Sept net profit INR 30.69 bln vs INR 37.17 bln 
--Maruti Suzuki Jul-Sept revenue INR 372.03 bln vs INR 370.62 bln 
--Maruti Suzuki Apr-Sept net profit INR 67.19 bln vs INR 62.02 bln 
--Maruti Suzuki Apr-Sept revenue INR 727.34 bln vs INR 693.89 bln 

 

By Anand JC

 

MUMBAI – Maruti Suzuki India Ltd.'s top-line for the September quarter remained flat on year, largely in line with analysts' estimates, on account of lower wholesale volumes and higher discounts offered. However, the company's net profit for the quarter fell 17% on year to INR 30.69 billion. Analysts had estimated the bottom line at INR 38.09 billion.

 

After the company announced its earnings, shares of Maruti Suzuki extended losses and, at 1347 IST, were down over 6% on the National Stock Exchange at INR 10,771.95. Deferred tax during the quarter was INR 10.15 billion, up from INR 667 million in the corresponding period last year on account of changes in long-term capital gains on debt mutual funds, in which the company parks surplus funds.

 

The company’s revenue from operations in Jul-Sept was INR 372.03 billion. Analysts had expected Maruti Suzuki to report revenue of INR 372.15 billion for the September quarter. The company's other income was INR 14.75 billion, nearly 75% higher on year and 51% sequentially.

 

The cost of materials consumed in the September quarter was INR 133.41 billion, 9% higher than in the year-ago period, and employee costs increased 15% on year to IN 14.69 billion. Overall expenses incurred in the quarter remained largely muted at INR 335.77 billion. The tax outgo in Jul-Sept was INR 10.17 billion, unchanged from the year-ago period.

 

For Apr-Sept, Maruti Suzuki's net profit was INR 67.19 billion, 8% higher on year. The top-line for the same period was INR 727.34 billion, up 5% on year.  

 

The company’s operating earnings before interest, and tax fell 8% on year to INR 36.66 billion in Jul-Sept. The margin of Maruti Suzuki in the September quarter benefited from cost reduction efforts, favourable foreign exchange variation, and higher non-operating income, the company said in an investor presentation. However, it was adversely affected by higher sales promotion expenses during the period, it said. In comparison to the June quarter, the company was also impacted by adverse commodity prices in the September quarter, it said.

 

Sales volume in the latest quarter stood at 541,550 units, down nearly 2% on year and up 4% sequentially. Domestic volume declined 3.9% on year in the September quarter, while export volumes increased 12.1%, the company said. In Apr-Sept, Maruti Suzuki's overall sales volume was 1.06 million units. Sales in the domestic market declined 0.3% on year in Apr-Sept, while export volumes increased 11.9%.

 

Maruti Suzuki's sales to other original equipment manufacturers in the September quarter were 29,849 units, 83.6% higher on year. The company's material cost increased 140 basis points on year in the September quarter and 160 basis points sequentially.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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