The demonetisation announcement had made a sore year for all the corporates. To combat the note-ban havoc amidst struggling to gain above-estimate profits, Maruti Suzuki offered steep discounts compared to the September quarter.
To add to the menace, there were mounting raw-material costs which hit the market hard. The company. Not only raw-material but other factors of production including labour staff and personnel costs have also hiked. This has taken a toll on the company’s performance and operations, thereby reducing the room for greater profit margins. However, the formidable company has managed to maintain it’s profitability despite all these adverse situations. This success is attributed exclusively to the stellar launches made by the company.
Sales growth was bolstered by a slew of power-packed launches in the recent past, most of which have done well. Maruti Suzuki’s net revenue was an impressive 12% higher at Rs16,865 crore, acing Bloomberg’s 27-broker average. Maruti Suzuki India net profit Up 47.5 per cent in Q317.
In the December quarter, Maruti matched up to the industry estimates. Maruti Suzuki India Ltd recorded mounting profits despite the effect of mega-cash clean up.
The country’s largest carmaker plans to lessen the discount range, owing to burgeoning sales from newer models which the company plans to launch.
Having a reliable stature in the Auto industry, Maruti enjoys an unabated attention and credibility from the stakeholders. The stock touched the range of Rs5,797 post the quarter results were out.
The company is anticipating even higher growth in the coming years, post the slowdown faced due to demonetisation and rising prices of factors, among various other odds.
