Maruti reports profit of Rs 1,587 crore in Q3FY20

The country’s largest passenger vehicle maker, Maruti Suzuki reported its third quarter result of the fiscal year 2019-20 today. Its consolidated revenue grew by 5 per cent to Rs 20,721.8 crore from Rs 19,680.7 crore in the corresponding quarter of the previous year. In Q3FY20, the company sold a total of 437,361 vehicles, up by 2 per cent from Q3FY19.

EBITDA for the quarter increased 9 per cent YoY to Rs 2,105 crore with a corresponding margin expansion of 30 bps. EBITDA margin for the quarter stood at 10.2 per cent. This was primarily driven by a decline in input cost which was at 40.58 percentage of Q3FY20 revenue versus 57 percentage of Q3FY19 revenue.

Net profit during the quarter grew by 4 per cent YoY to Rs 1,587.4 crore. The company witnessed a lower effective tax rate during the quarter but this was offset by lower other income and higher depreciation in the quarter.

As a response to this result, the stock of Maruti Suzuki declined on the bourses. The stock post announcement of result touched an intra-day low of Rs 6,967.15, down by 2.5 per cent from the previous close.