Maruti Suzuki skids after muted Q3 profit

Maruti Suzuki India's consolidated net profit grew 4.13% to Rs 1587.4 crore in Q3 December 2019 as against Rs 1524.50 crore reported in Q3 December 2018.

On a consolidated basis, total revenue from operations rose 5.29% to Rs 20721.8 crore in Q3 2019 as compared to Rs 19680.7 crore reported in Q3 2018. The result was announced during market hours today, 28 January 2020.

Consolidated profit before tax (PBT) for Q3 December 2019 stood at Rs 2026.30 crore, down 3.31% against Rs 2095.70 crore reported in Q3 December 2018. Total tax expense declined 23.16% to Rs 438.90 crore in Q3 FY20 from Rs 571.20 crore posted in Q3 FY19.

Net profit for the quarter rose on account of cost reduction efforts, lower operating expenses, lower commodity prices and reduction in corporate tax rate, partially offset by higher sales promotion expenses, higher depreciation, and lower fair value gains on invested surplus.

The company sold a total of 437,361 vehicles during the quarter, higher by 2% compared to the same period previous year. Sales in the domestic market stood at 413,698 units, higher by 2%. Exports were at 23,663 units.

In a separate announcement earlier today, the auto maker announced a hike in prices of car models from 0% to 4.7% (ex-showroom - Delhi). The new prices are effective from 27 January 2020.

Shares of Maruti Suzuki were down 2.15% at Rs 6990.30. The stock hit a high of Rs 7218.15 and a low of Rs 6983.35 in intraday so far.

Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).

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