Maruti Suzuki net profit rises by 60% to Rs 2398 crore

Maruti Suzuki's second quarter September 30, 2016 beats estimates by reporting net profit of Rs 2398 crore, a rise of 60.2% from Rs 1497 crore in the corresponding quarter of the previous year. This net profit also have risen by 61.35% quarter-on-quarter. 

Total income from operations stood at Rs 20,296.80 crore, increasing by 29.28% year-on-year (yoy) and 19.59% quarter-on-quarter (qoq). 

While operating profit of Rs 3037.40 crore in this period, registered growth of 35.3% yoy and 37.1% qoq. It's operating profit margin was at 17.3%, expanding by 80 basis point yoy and 220 basis point qoq. 

During this quarter, Maruti sold 4,18,470 vehicles, a growth of 18.4% yoy. From the total - domestic sales saw growth of 18.5% with sales of 3,83,030 units. Exports were also robust for this quarter with sales of 35,440 units which increased by 18% yoy. 

The company said,"Higher volumes leading to higher capacity, utilisation, lower expenses on sales promotion and marketing and higher non-operating income contributed to increase in profits. This was partially offset by adverse foreign exchange movement."

After the announcement, shares of Maruti Suzuki surged over Rs 68 or 1.16% on BSE, trading at Rs 5936.30 at 13.32 pm.