Maruti Suzuki India's Q3 Net Profit Surges 80.3%

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【Summary】Maruti Suzuki India's net profit for the July-September quarter jumped 80.3% to Rs 3,716.5 crore, driven by higher sales, cost reduction efforts, and non-operating income. The company expects the affordability of small cars to improve in the next few years due to rising income levels and a growing economy. It recorded its highest-ever quarterly sales volume, net sales, and net profit in this quarter.

FutureCar Staff Oct 28, 2023 4:20 PM PT

Maruti Suzuki India's Q3 Net Profit Surges 80.3%

Maruti Suzuki India, the leading automobile manufacturer, has reported a significant increase in net profit for the July-September quarter. The company's net profit surged by 80.3% to Rs 3,716.5 crore, driven by various factors such as better sales, softening commodity prices, cost reduction efforts, and higher non-operating income. This is a substantial improvement compared to the net profit of Rs 2,061.5 crore in the same quarter of the previous fiscal year.

Maruti Suzuki India is optimistic about the future, expecting the affordability of small cars in the domestic market to improve in the next two to three years. This is due to rising income levels and a growing economy, among other factors. The company believes that these positive trends will gradually erode the affordability factor that previously impacted small car sales.

During the quarter under review, Maruti Suzuki India achieved higher net sales of Rs 35,535.1 crore, compared to Rs 28,543.50 crore in the same quarter of the previous fiscal year. This increase can be attributed to higher sales volume and a favorable product mix. The company sold 5,52,055 vehicles in the quarter, with 4,82,731 units sold in the domestic market and the remaining 69,324 cars exported.

Maruti Suzuki India also recorded its highest-ever quarterly sales volume, net sales, and net profit in this quarter, indicating a strong performance for the company. The chairman, R.C. Bhargava, expressed confidence in the future growth of the market, stating that people will gradually be able to afford small cars again.

In other news, pharmaceuticals firm Cipla Ltd reported a 44.9% rise in consolidated profit after tax at Rs 1,155.37 crore in the second quarter ended September 2023. This is compared to a profit of Rs 797.41 crore in the same quarter last fiscal year. The company's total revenue from the sale of products also increased by 14.41% to Rs 6,589.22 crore.

Similarly, Dr Reddy's Laboratories witnessed a 33.02% increase in consolidated profit after tax at Rs 1,482.2 crore in the second quarter ended September 30. This growth was primarily driven by the US generics market. The company's consolidated total revenue from operations was at Rs 6,902.6 crore, reflecting a 9% increase compared to the year-ago period.

Overall, these companies have demonstrated strong financial performance, indicating positive growth prospects in their respective industries.