Maruti Suzuki disappoints with Q3 numbers; higher tax outgo cuts profit growth to 3%

NEW DELHI: Maruti Suzuki on Thursday reported 3 per cent year-on-year (YoY) growth in profit after tax (PAT) at Rs 1,799 crore for December quarter. This was much lower than Rs 2,019 crore anticipated by analysts in an ET Now poll.

The company had reported Rs 1,747.2 crore profit in the corresponding quarter last year. The tepid growth in net profit was on account of increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year, the company said.

The company board has approved a revision in the method of calculating royalty which would result in lower royalty payments for new model agreements starting with Ignis. This would be implemented after approval by the board of Suzuki Motor Corporation, the company said.


The company reported higher sales volume and initiated cost reduction efforts, lower sales promotion expenses and forex benefit, which partially offset by adverse commodity prices.

Sales for the quarter rose 13.9 per cent to Rs 18940 crore, the company said in a BSE filing. The company sold a total of 4,31,112 units during the duarter, up 11.3 per cent on YoY basis.

Sales in the domestic market grew 12.4 per cent at 4,00,586 units. Exports stood at 30,526 units.