The country’s largest car maker – Maruti Suzuki – on Tuesday, April 27, reported net profit of Rs 1,166 crore in January-March quarter of financial year 2020-21 that marked a decline of 9.73 per cent from profit of Rs 1,291.7 crore during the same quarter last year. (Track Maruti Suzuki share price here)
Maruti Suzuki’s revenue from sale of products advanced 33.59 per cent to Rs 22,958.6 crore from Rs 17,185.7 crore.
During the quarter ended March 2021, Maruti Suzuki sold 4,92,235 vehicles, registering a jump of 27.8 per cent from the same quarter last year.
Its operating profit margin or operating (EBIT) improved by 120 basis points to 5.4 per cent, the Gurugram-based auto maker said in a press release.
Improved capacity utilization, lower sales promotion expenses and increase in selling prices and cost reduction efforts were key positive factors for the company in March quarter. While, adverse commodity prices, adverse foreign exchange fluctuation and lower fair value gains on invested surplus were negative factors for the company, Maruti Suzuki said.
Maruti Suzuki hiked prices on selected models from April 16 due to an increase in various input costs. According to a regulatory filing by the company to stock exchanges, the weighted average price increase in ex-showroom prices (Delhi) across selected models is 1.6 per cent. This was the second price hike on cars by the company this month, and the third hike since February.
Maruti Suzuki shares fell 1 per cent to Rs 6,572, underperforming the Sensex which was up 1 per cent.