Maruti Suzuki India Ltd.’s third-quarter profit rose sequentially, beating analysts' estimates, as lower costs led to improved margins.
India’s largest carmaker’s consolidated net profit rose 13% sequentially to Rs 2,391.5 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 1,851-crore consensus forecast of analysts tracked by Bloomberg.
Maruti Suzuki Q3 FY23 Highlights (QoQ):
Revenue fell 3% to Rs 29,057.5 crore, against estimates of Rs 27,638 crore.
Operating profit rose 2% to Rs 2,837 crore, against forecast of Rs 2,609 crore.
Operating margin stood at 9.8% against 9.3% in the preceding quarter and estimates of 9.4%.
As shortage of semiconductors severely impacted the company’s production last year, a year-on-year comparison showed a big jump in numbers.
Maruti Suzuki Q3 FY23 Highlights (YoY):
Net Profit rose 130% to Rs 2,391.5 crore, against the estimated Rs 1,851 crore.
Revenue rose 25% to Rs 29,057.5 crore, against estimates of Rs 27,638 crore.
Operating profit rose 82% to Rs 2,837 crore, against forecast of Rs 2,609 crore.
Operating margin stood at 9.8% against 6.7% in the preceding quarter and estimates of 9.4%.
While the situation has eased significantly compared with last year, the short supply of chips continues to limit the automaker’s production.
"Shortage of electronic components impacted production by about 46,000 vehicles in this quarter," the company said in a press release.
The company’s net profit rose 130% and revenue from operations rose 25% year-on-year.
The improvement in Ebitda margin was due to lower material costs, which fell 80 basis points sequentially as a percentage of sales.
If not for higher sales promotion expenses during the quarter, there would have been more improvement in the margins.
In the third quarter, the company’s sales volume declined 10% sequentially to 4,65,911 units. The sales rose 8.2% year-on-year.
As a result of supply being lower than demand, the carmakers' pending orders stood at 3.63 lakh units at the end of the quarter, out of which about 119,000 were for newly launched models.
Shares of Maruti Suzuki were trading 2.4% higher against a mere 0.05% rise in the benchmark Nifty 50 as of 1.12 p.m.
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