Maruti’s recently launched New Alto 800 has picked up well in the festive season and is expected to do well in the fourth quarter. This coupled with the order backlog for Swift, Swift Desire and Ertiga is expected to drive the demand scenario for the auto major
New Delhi: Riding on good sales of new variants like Ertiga and Swift DZire, and benefiting from low base effect, the country’s largest car maker Maruti Suzuki India on Friday reported an over two-fold jump in net profit to Rs501.29 crore for the third quarter, reports PTI.
The company’s net profit stood at Rs 205.62 crore during the same period last fiscal.
Net sales during the third quarter to end-December, stood at Rs10,956.95 crore, up 45.57% from Rs7,527.10 crore in the year-ago period, Maruti Suzuki India (MSI) said in a statement.
“The growth in net profit was primarily due to higher sales and good response to new models like Ertiga and Swift DZire,” it said, adding the company's continued cost reduction efforts helped to drive profit in the quarter.
Hit by low sales and labour unrest at its Manesar plant and rupee depreciation, the car maker, a unit of Japanese Suzuki Motor Corporation, had reported a 63.6% fall in net profit for the quarter ended 31 December 2011, to Rs205.6 crore, its worst performance in previous 12 quarters.
MSI said its sales volume stood at 3.01 lakh units during the third quarter this fiscal as compared to 2.4 lakh units in the corresponding period of previous year, up 25.85%.
Cheering the smart earnings numbers, shares of MSI were trading 4.10% up at Rs1,599.50 crore apiece during afternoon on the BSE.
During the quarter under review, the company sold 2.7 lakh units in the domestic market compared to 2.1 lakh units, reflecting a growth of 26.98%.
It exported 32,496 units during the quarter, up 17.21% from 27,725 units in the year-ago period.
"The growth in net sales was on account of higher volumes, favourable model mix and enhanced export realisation," MSI said.
During the quarter, the company's total expenses went up by 39.86% to Rs10,667.40 crore from Rs7,627.32 crore in the year-ago period.
MSI spent Rs8,376.04 crore on raw materials compared to Rs5,866.26 crore in the same period last fiscal, up 42.78%, the statement said.
During October-December period last year, MSI's tax expenses also increased by over three-fold to Rs174.34 crore as against Rs55.68 crore in the corresponding three-monthly period in 2011.
The finance cost of the company also went up by over two-fold to Rs45.93 crore from Rs17.59 crore in the same period last fiscal, MSI said.
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