Maruti Suzuki Q3 earnings: Net profit rises 4% to ₹3,794 crore, EBITDA jumps 10%, margin contracts by 190 basis points

Maruti Suzuki said that it incurred an exceptional expense of ₹594 crore on account of implementation of four new labour codes.

Maruti Suzuki's total revenue from operation during the October-December period rose 29% annually to ₹49,891 crore as against ₹38,752 crore in the year-ago period.

The Delhi-based company's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) also known as operating profit rose 10% to ₹5,572 crore but its EBITDA margin contracted by 190 basis points to 11.17%.

"Owing to the GST reform, there was a sharp recovery in the Indian car market, primarily led by the small car segment. The Company achieved its highest-ever Quarterly domestic sales of 5,64,669 units as compared to 4,66,993 units in Q3 the previous year, an increase of 97,676 units," Maruti Suzuki said in an exchange filing.

"Out of this increase, the small car segment in the 18% GST bracket accounted for 68,328 units. The Company clocked record total sales of 667,769 units including exports of 103,100 units. In the same period last year, the total sales were at 566,213 units, comprising domestic sales of 466,993 units and exports of 99,220 units," Maruti Suzuki added.

In the first nine months of the current financial year Maruti Suzuki clocked total sales 17,46,504 units compared with 16,29,631 cars it sold in the same period last year.

The company registered net sales of ₹1,24,291 crore in the first nine months as compared to ₹1,06,259 crore in the year-ago period.

Maruti Suzuki shares witnessed a sharp selloff after it announced its December quarter earnings. The stock fell as much as 5.3% to hit an intraday low of ₹14,431.