Maruti Suzuki India has reported a 4.13 per cent growth in consolidated net profit at Rs 1,587.4 crore for the December quarter of 2019, riding on lower commodity prices, reduced corporate tax rate besides efforts to cut costs.
The company had posted a net profit of Rs 1,524.5 crore in the same quarter last fiscal, MSI said in a regulatory filing. Consolidated revenue from operations in the quarter under review stood at Rs 20,721.8 crore against Rs 19,680.7 crore in the year-ago period, up 5.29 per cent.
The shares of Maruti Suzuki fell over 2 per cent after the company’s December quarter earnings failed to enthuse investors. The scrip declined 2.05 per cent to close at Rs 6,996.95 on the BSE.
During the day, it dropped 2.47 per cent to Rs 6,967.15. On the NSE, it fell 2.12 per cent to close at Rs 6,997.05. The company sold a total of 4,37,361 vehicles during the quarter, up 2 per cent compared with the same period a year ago.
Sales in the domestic market stood at 4,13,698 units, a growth of 2 per cent from the year-ago period. Exports were at 23,663 units, it said.
In a statement, the company said it was able to register higher net profit during the third quarter on “account of cost reduction efforts, lower operating expenses, lower commodity prices and reduction in corporate tax rate”.
This was, however, partially offset by higher sales promotion expenses, higher depreciation, and lower fair value gains on invested surplus, it added.
During April-December 2019, the company said its consolidated net profit stood at Rs 4,355.3 crore compared with Rs 5,819.8 crore in the year-ago period, down 25.16 per cent.
Total revenue from operations during the nine-month period stood at Rs 57,452.3 crore compared with Rs 64,594.5 crore, a decline of 11.06 per cent, it said. MSI said it sold a total of 11,78,272 vehicles in April-December, down 16.1 per cent from the same period previous year.
Sales in the domestic market during the nine-month period stood at 11,00,698 units, lower by 16.9 per cent, it said, adding exports were at 77,574 units.
