India's Top Carmaker Maruti Suzuki Q2 Profit Quadruples
October 28, 2022
Maruti Suzuki India Ltd said on Friday quarterly profit more than quadrupled, as the country's biggest carmaker benefited from higher sales volume and improved price realisations.
Standalone net profit came in at 20.62 billion Indian rupees ($250.03 million) for the quarter ended Sept. 30, compared with 4.75 billion rupees a year ago when production was hampered by chip shortage, the Indian unit of Japan's Suzuki Motor Corp said in an exchange filing.
Passenger vehicle sales in world's fourth-largest car market surged nearly 38.4% in July-September, according to auto industry body Society of Indian Automobile Manufacturers.
A decline in raw material prices, coupled with price hikes and improved supply chain dynamics for semi-conductor chips helped Maruti improve its earnings margin before interest, taxes, depreciation, and amortization (EBITDA) - a key measure of profitability.
EBITDA margin for the quarter stood at 9.25%, expanding from 7.2% last quarter and 4.2% a year ago. Analysts had expected an EBITDA margin of 9.4%, according to Refinitiv data.
Standalone net profit came in at 20.62 billion Indian rupees ($250.03 million) for the quarter ended Sept. 30, compared with 4.75 billion rupees a year ago when production was hampered by chip shortage.
Analysts were expecting a profit of 19.13 billion rupees, according to Refinitiv IBES data.
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