Maruti Suzuki Q3 Profits Surge 12% to Rs 35,250 Crore, Advertising Expenses Jump

Maruti Suzuki Shares: The auto major reported a 12% jump in PAT (profit after tax) to Rs 35,250 Crore for the quarter ending December as sales volume rose by 13%. Maruti Suzuki's results were largely in-line with what analysts were expecting after a moderate demand outlook.

The total sales figure for the quarter were 566,213 vehicles. What really stole the show in Maruti Suzuki's quarterly earnings was the record high export figure. "The Company exported 99,220 units, the highest-ever in any quarter. The same period in the previous year saw total sales of 501,207 units comprising 429,422 units in domestic and 71,785 units in export markets," the company said in a release.

On Wednesday, the shares of the Maruti Suzuki concluded the trading session at Rs 11,953, down by over 1.4% on the National Stock Exchange.

The revenue from operation figure stood at Rs 38,764 crore, up by nearly 16% from Rs 33,513 crore reported in the corresponding quarter of the previous year.

As per the investor presentation, a favourable operating leverage coupled with higher non-operating income worked well for Maruti Suzuki's Q3 earnings. However, higher promotion expenses did act as a negative factor.

Maruti Suzuki Share Price

In the last month alone, the shares of the auto giant surged by over 10% despite benchmark indices witnessing a major downtrend.

However, the stock is still down by over 11% from its 52-week-high of Rs 13,680.

In terms of key segments, sales of utility vehicles (UVs) increased by 20.2%, reaching 185,298 units, while compact car sales saw a decline of 4.6%, totaling 182,227 units. Operating EBIT surged by 16.1% to Rs 3,665 crore from Rs 3,156 crore in the corresponding quarter of the previous year.

"Decent financial performance marked the quarter for Maruti Suzuki India, achieving a healthy revenue growth. The company's topline growth was fueled by an improved product mix, primarily driven by the increased contribution of SUVs, which led to better realizations. The product mix also benefited from a healthy contribution of spare parts. However, margins were under pressure (in line with expectation) during the quarter due to higher discount scales and increased promotional spending," said Sagar Shetty, research analyst at StoxBox.