Good sales, low base push Maruti Suzuki India Q3 net profit up two-fold

It exported 32,496 units during the quarter, up 17.21 percent from 27,725 units in the year-ago period.

"The growth in net sales was on account of higher volumes, favourable model mix and enhanced export realisation," MSI said.

During the quarter, the company's total expenses went up by 39.86 per cent to Rs 10,667.40 crore from Rs 7,627.32 crore in the year-ago period.

MSI spent Rs 8,376.04 crore on raw materials compared to Rs 5,866.26 crore in the same period last fiscal, up 42.78 per cent, the statement said.

During October-December period last year, MSI's tax expenses also increased by over three-fold to Rs 174.34 crore as against Rs 55.68 crore in the corresponding three-monthly period in 2011.

The finance cost of the firm also went up by over two-fold to Rs 45.93 crore from Rs 17.59 crore in the same period last fiscal, MSI said.

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Commenting on the results, Kotak Securities Auto Analyst Arun Agarwal said: "Maruti Suzuki reported strong Q3 FY'13 numbers. Revenues came in ahead of expectation on account of better than expected average selling price. EBITDA margin at 8 per cent though was in line with our estimates."

Expectation of improvement of passenger car demand, coupled with strong product portfolio, is expected to help the company post healthy volume growth next fiscal, and margins in FY'14 should receive boost from depreciating Yen, he added.

IndiaNivesh Securities

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