Maruti Suzuki misses market estimates despite record quarterly sales

New Delhi: Maruti Suzuki Wednesday missed market estimates with a 3.7% increase in third-quarter net profit, weighed down by weak exports and a one-time provision made for implementing new labour codes, even as the country's largest carmaker recorded its best quarterly net sales on record.

The local unit of Japan's Suzuki Motor reported a standalone net profit of ₹3,794 crore for the three months ended December 31, compared with ₹3,659.30 crore a year earlier. Analysts were projecting the profit to grow between 24% and 35%.

The automaker made a provision of ₹593.9 crore towards labour-code related expenses.

Net sales rose 29% to ₹47,534.4 crore from ₹36,802 crore amid strong demand for cars during the festive period, helped by a GST reduction that came into effect on September 22.

"Owing to the GST reform, there was a sharp recovery in the Indian car market, primarily led by the small car segment," Maruti Suzuki said in a news release.

The manufacturer of the Alto K10, WagonR, and Brezza said its quarterly domestic sales volume was also the highest on record at 564,669 units, compared with 466,993 units in the third quarter of last fiscal year. While total volume increased 97,676 units, the small car segment, where GST was cut to 18% from 28%, accounted for 68,328 of those units.

While domestic sales volume rose by a robust 21% to 564,669 units last quarter, exports grew by 3.9% to 103,100 units.

Shares of Maruti Suzuki closed Wednesday at ₹14,876.80, down 2.4%, on the BSE.