Maruti Suzuki Beats Estimates By A Mile
Maruti Suzuki’s shares fluctuate after second quarter profits exceed street estimates.
Maruti Suzuki Ltd. delivered 60.2 percent profit growth in the July to September quarter, surpassing analyst estimates by a wide margin.
Net profit jumped to Rs 2,398 crore from Rs 1,495 crore in the same quarter last year, the car maker said in its filing to the exchanges. That compares with the Rs 1,765 crore consensus of 31 analysts’ estimates compiled by Bloomberg.
Revenue rose 29.3 percent to Rs 20,297 crore, beating the consensus estimate of Rs 17,961 crore. Other income stood at Rs 812.6 crore, which doubled from Rs 474 crore in the year-ago period.
Growth Drivers
Higher sales, lower costs and an increase in non-operating income boosted profitability, Maruti Suzuki said in its press statement.
Higher volumes leading to higher capacity utilisation, lower expenses on sales promotion and marketing and higher non-operating income contributed to increase in profits. This was partially offset by adverse foreign exchange movement.Maruti Suzuki’s Statement
Earnings before interest, tax, depreciation and amortisation rose 35.3 percent to Rs 3,037.6 crore, while the EBITDA margin expanded to 15 percent from 14.3 percent.
.png?auto=format%2Ccompress)
Strong Sales
The company sold more than 4.2 lakh cars during quarter, with volumes jumping 18.4 percent.
The compact segment, comprising of Swift, Baleno, Celerio, Ritz and Dzire, posted robust performance with sales rising 8.6 percent to 1.46 lakh cars. The utility vehicles segment comprising of Vitara Brezza, Ertiga and Gypsy, outperformed with sales growing nearly 1.5 times to 52,611 vehicles. The mini segment, which includes cars like Alto and WagonR, registered 3.6 percent growth in sales.
