Maruti Suzuki on Thursday posted 3% increase in net profit to ₹1,799 crore for the quarter ended December 31.
“While the operating profit increased by 26.7%, the net profit increased by 3% due to increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year,” the firm said in a statement. Maruti had posted a profit of ₹1,747.2 crore in October-December 2016 quarter and ₹2,484.3 crore in the July-September 2017.
During the quarter under review, Maruti’s total income was ₹19,528.1 crore, a decline of 1.3% from ₹19,793.3 crore in the year-earlier period. Sequentially, the total income declined 12.3% from ₹22,291.1 crore in July-September 2017 quarter.
Maruti sold more than 4.31 lakh vehicles, a growth of 11.3%. “The operating profit was ₹2,348.8 crore, a growth of 26.7% over the year-earlier period on account of higher sales volume, cost reduction efforts, lower sales promotion expenses and forex benefit, partially offset by adverse commodity prices,” it added.
Royalty
The company said its board on Thursday approved a revision in the method of calculating royalty which would result in lower payments for new model agreements starting with the Ignis.
This would be implemented after approval by the board of Suzuki Motor Corporation.
