Maruti Suzuki Q3 results show huge growth in net profit by 24% amounting to about Rs 1,941 crore, fueled by very healthy sales in the October-December quarter. Sales were up by Rs 22,367 crore at an increase of 13.2% compared to the same quarter of the previous financial year.
A total of 495,897 vehicles were sold by Maruti Suzuki during the December quarter, which was 13.4% more compared to last year. The company also reported a good increase in exports and sold 28,528 units in the quarter which was higher by 20.6%.
Though this is definitely a piece of very good news for Maruti Suzuki, it further clarified that such a humongous rise was only because the sales had previously heavily declined as a result of the lockdown which was ordered by the Central Government last year to manage the COVID-19 pandemic.
Maruti Suzuki, in a statement, reported, “These results have to be viewed in the context that in the previous year FY 2019-20, sales volume declined by 16% for the company and about 18% for the industry.”
“The operating profit for the quarter was at Rs 1484.8 crore, a growth of 19.3% over the same period previous year on account of higher sales volume and cost reduction efforts partially offset by an increase in commodity prices and adverse foreign exchange movement.”
With the ongoing pandemic and the subsequent lockdowns, between April to December, Maruti Suzuki sold a total of 965,626 vehicles only, which was less by 18% as compared to the same period in 2019. Sales in the domestic market were down by 17.8% and the exports too were underwhelming at 60,611 units which were less by 21.9%.