India’s largest automaker Maruti Suzuki second-quarter profit quadrupled, topping the scene
BENGALURU (Reuters) – Maruti Suzuki India Limited (MRTI.NS) It beat expectations on Friday with a more than fourfold jump in quarterly profit, as the nation’s largest automaker benefited from record sales, easing commodity prices and improving profit margins.
Maruti, which has about 40% market share in India’s passenger car market, sold a record 517,395 vehicles during the quarter, up 36% from last year, the Indian unit of Japan’s Suzuki Motor Co. (7269.T) He said in the exchange deposit.
Passenger car sales in the world’s fourth-largest auto market rose nearly 38.4% in the July-September period, according to the Automobile Industry Association of Indian Auto Manufacturers. Read more
The decline in raw material prices, along with higher prices and improved supply chain dynamics for semiconductor wafers, helped Maruti improve its EBITDA margin – a key measure of profitability.
EBITDA margin for the quarter settled 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 was 20.62 billion Indian rupees ($250.03 million) for the quarter ended September 30, compared to 4.75 billion rupees a year ago when chip shortages hampered production.
Analysts had expected a profit of 19.13 billion rupees, according to Refinitiv IBES data.
(1 dollar = 82.4700 Indian rupees)
Additional reporting by Nallur Sithuraman in Bengaluru; Editing by Dania Ann Thoppil
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