• By Vaamanaa Sethi
  • Fri, 27 Oct 2023 02:34 PM (IST)
  • Source:JND
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Shares of Maruti Suzuki were trading at Rs 10,805 apiece, up almost 4% at 2:10pm on October 27. Maruti Suzuki stock rose after the car making company reported an 80% year-on-year (YoY) rise in net profits at Rs 3,716.5 crore.

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Maruti Suzuki share price opened at Rs 10,479.30 on Friday’s trading session on Friday, against previous close at Rs 10,424 per piece.

Maruti's increased net profit can be attributed to factors such as higher net sales, a decrease in commodity prices, cost-saving initiatives, and a rise in non-operating income.

The Indian subsidiary of Japanese automaker Suzuki Motor Corporation also reported its revenue up by 23.8% to Rs 37,062 crore. The company's EBIDTA also rose by 12.9% vis-a-vis 8.3 percent in the corresponding period last year.

During the July-September quarter, MSIL’s total volumes rose 8 percent to 466,469 units, out of which 459,052 units were passenger vehicles and the remaining 7,417 units were commercial vehicles.

Automotive experts believe that the substantial increase in sales volume during the second quarter can be predominantly attributed to the introduction of new SUV models and the application of discounts to entry-level car models.

The financial results surpassed the predictions of analysts, with an average estimate from five brokerage firms indicating that MSIL was expected to report a second-quarter net profit of Rs 2,921 crore.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), or operating profit, surged to Rs 4,784 crore in the second quarter, compared to Rs 2,769 crore during the corresponding period in the previous fiscal year. Additionally, the EBITDA margin increased to 12.9 percent, up from 8.3 percent in the same period the previous year.

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Throughout the July-September quarter, MSIL observed an 8 percent growth in total volumes, reaching 466,469 units. This comprised 459,052 passenger vehicles and 7,417 commercial vehicles. Within the passenger vehicle category, the sales breakdown included 199,686 hatchbacks, 44,256 sedans, 125,121 SUVs, 54,946 MPVs, and 35,043 vans. Notably, this marked an improvement from the 425,396 units of passenger vehicles and commercial vehicles sold during the corresponding period in the previous year.