Maruti Suzuki India on Thursday reported a net profit of Rs 1,371.60 crore in the July-September period, marking a gain of nearly 1 per cent compared to the corresponding period a year ago. The country's largest carmaker said its total revenue from operations rose 10.35 per cent to Rs 18,744.50 crore in the second quarter of current financial year, compared to Rs 16,985 crore in the year-ago period. Shares in Maruti Suzuki, however, declined as much as 2.70 per cent to Rs 6,988.70 apiece after the earnings announcement. (Track Maruti Suzuki stock price here)
Its sales volume increased 16.2 per cent to 3,93,130 vehicles during the quarter, New Delhi-based Maruti Suzuki said in a press release.
The company said its performance improved during the quarter on the back of some demand recovery and gradual improvement in supply conditions.
Production across its factories and supply chain was progressively ramped up consistent with "our policy of maximum safety of the people and following all prescribed protocols to ensure this", Maruti Suzuki said.
The company's earnings, before interest and taxes (EBIT) - or operating profit - rose 71.7 per cent to Rs 1,167 crore.
Domestic sales increased 18.6 per cent to 370,619 vehicles, but exports fell 12.7 per cent to 22,511 vehicles, Maruti Suzuki added.
Higher sales volumes leading to improved capacity utilization, lower sales promotion and advertisement expenses, lower operating expenses and cost reduction efforts were positive factors for Maruti Suzuki in the quarter.
At 2:57 pm, Maruti Suzuki shares traded 1.33 per cent lower to Rs 7,087 apiece on the BSE, underperforming the benchmark S&P BSE Sensex index, which was down 0.71 per cent.