Updated January 31st, 2024 at 16:59 IST
Maruti Suzuki Q3 profit surges to Rs 3,130 crore on robust SUV sales
The company witnessed surge in SUV demand, including popular models like 'Grand Vitara' and 'Brezza,' contributing to a notable 7.6% increase in total sales.
Maruti Suzuki Q3: Leading car manufacturer Maruti Suzuki India has outperformed market expectations with a significant surge in third-quarter profits, driven by robust demand for its Sport Utility Vehicles (SUVs). The company reported an impressive 33 per cent increase in profit after tax for the quarter ending December 31, reaching Rs 3,130 crore. This surpassed the average analyst estimate of Rs 2,925 crore, according to LSEG data.
SUV sales boost total volumes
Maruti Suzuki witnessed a heightened demand for its SUVs, including popular models like 'Grand Vitara' and 'Brezza,' contributing to a notable 7.6 per cent increase in total sales volumes, reaching 501,000 units. The surge in SUV sales played a pivotal role in surpassing profit expectations.
Small cars face challenges
While SUVs flourished, sales of small cars, including 'Alto' and 'Baleno,' faced challenges throughout the year. The prolonged impact of high inflation curbing rural spending, a significant consumer demographic for small cars, contributed to a dip in sales. The moderation in December small car wholesales also played a role in the segment's overall decline.
Maruti Suzuki's revenue from sales saw a commendable 14.4 per cent increase, reaching Rs 31,860 crore. This financial performance underscores the company's resilience and ability to navigate market dynamics effectively.
The shares of Maruti Suzuki surged 2.36 per cent to an intraday high of Rs 10,235.60 apiece on the NSE on Wednesday, January 31, 2024.
Published January 31st, 2024 at 15:09 IST