New Delhi: Maruti Suzuki, the country’s largest carmaker, on Tuesday logged a net profit of Rs 1,011 crore for the October-December quarter (Q3) of the current financial year, down 48 per cent (YoY) from Rs 1,941 crore the company posted a year ago.
The automaker’s net profit slips because of global chip shortage which has slowed production. On the other hand, high material costs have squeezed margins for the company.
According to Reuters, Maruti said that despite cost reduction efforts, due to lower sales volume, high commodity prices, and lesser non-operating income on account of mark-to-market impact, its profits were comparatively on the lower side.
The revenue from the sale of products was at Rs 22,187 crore against Rs 22,236 crore in the corresponding quarter last year.
Operating Ebitda margin was 4.1 per cent in the third quarter of the current financial year against 6.7 per cent recorded in the corresponding period of last year. The profit margin was at 4.6 per cent against 8.7 per cent in the same quarter last year.
Maruti Suzuki have already hiked prices at least four times last year.
The company, which sells every second car in India, said unit sales fell 13 per cent to 430,668 vehicles from 495,897 cars a year earlier.
Analysts had expected Rs 1,058 crore. Total revenue from operations fell 1 per cent to Rs 23,246 crore.
“The exports were 66 percent higher than the previous peak exports in any Q3,” the company said in a statement.
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