Maruti Suzuki India’s Q3 profit zooms 47% to Rs 1,744 crore

Maruti Suzuki India today revealed the financial results for the quarter ended December 2016. The numbers show that the country's leading carmaker is strongly placed to drive further growth. 

For Q3 (October-December 2016), the carmaker sold a total of 387,251 vehicles, a 3.5 percent year-on-year growth. Of this, exports stood at 30,748 units.

The company registered net sales of Rs 16,623 crore, a growth of 12.4 percent over the same period in 2015.

Net profit in Q3 (2016-17) stood at Rs 1,744 crore, up 47.5 percent year on year. Maruti attributes the increase in profits to a rise in higher-segment models, lower sales promotion and marketing expense, cost reduction efforts and higher non-operating income. This was partially offset by the increase in commodity prices and adverse foreign exchange movement during the quarter.

April-December 2016

For the first nine months on the ongoing fiscal, Maruti Suzuki has sold a total of 1,154,164 vehicles, a YoY growth of 8 percent. Of this, exports comprised 92,291 units.

While net sales totaled Rs 48,904 crore, up 17.9 percent YoY, net profit stood at Rs 5,628 crore up 44.8 percent YoY.

Maruti continues to have a stranglehold on the overall passenger vehicle market with a market share of 47.32 percent, thanks to surging demand for its first-ever compact SUV, the Vitara Brezza. When it comes to passenger cars, the company has an overall market share of 51.89 percent, marginally down on the 52.78 percent it had in April-December 2015. Clearly, demonetisation has not spared India’s No.1 carmaker, and sales of Maruti’s bread-and-butter entry level cars like the Alto and Wagon R have been hit.