New Delhi: Maruti Suzuki India Ltd, the nation’s biggest car maker by volume, reported third quarter profit that beat analysts’ estimates on higher demand for its new Ertiga minivans and revamped Swift DZire.
Net profit at Suzuki Motor Corp.’s Indian unit more than doubled to Rs.501 crore ($93 million) in the three months, the New Delhi-based company said in a statement on Friday. That exceeded the Rs.489 crore median of 38 analysts’ estimates compiled by Bloomberg.
India’s automakers’ association cut its full-year domestic car sales forecast for the third time in six months amid slowing economic growth and high interest rates that kept buyers from showrooms.
“Maruti has seen high volumes and a better product mix as a result of the demand for its models such as the Swift and Ertiga,” Basudeb Banerjee, an analyst at Quant Broking Pvt. Ltd in Mumbai said before the results were announced. “Unless there is another labour problem, Maruti will continue to do well with demand remaining strong for models such as the Swift and DZire.”
Sales rose 46% to Rs.10,960 crore in the quarter, Maruti said. The median of 38 analysts’ estimates compiled by Bloomberg was for revenue of Rs.10,980 crore.
“Local deliveries at Maruti are set to increase as much as 6% in the current financial year after dropping 11% in the previous 12 months,” Mayank Pareek, head of sales, said last month.
Maruti rose to its highest in three years in Mumbai trading.
Maruti climbed 4.15% to close at Rs.1,600.20. The stock, which was the biggest gainer on the benchmark Bombay Stock Exchange India Sensitive Index, was at the highest level since December 2009.
The Society of Indian Automobile Manufacturers lowered its full-year domestic car sales forecast on 9 January to as little as no growth, the third cut in six months after local deliveries in December fell 13% to 141,083 cars, the second consecutive monthly decline.