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Maruti: Operating profit margin strong and rising

Better volumes, high acceptance of recent launches raise operating margin, offset forex fluctuations

Hamsini Karthik  |  Mumbai 

Even before festive demand kicks in, the September quarter (Q2) turned out the best in recent times for Maruti Suzuki. Net revenue (which is sales minus excise duty) grew 30 per cent over a year ago to Rs 17,595 crore. Net profit grew 60 per cent over a year ago to Rs 2,398 crore, exceeding Bloomberg consensus estimate of Rs 1,765 crore.

Other income of Rs 813 crore, up almost two-fold over a year ago, also topped expectations. But volume-led revenue growth played a larger role in Q2, offsetting foreign exchange fluctuations. Operating profit margin at 15.8 per cent, up 125 basis ...

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First Published: Thu, October 27 2016. 21:36 IST
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