Indian car manufacturer Maruti Suzuki surpassed quarterly profit rates on Friday as a series of inflation and low-cost promotional sales helped correct the impact of raw material prices and global chip shortages.
Maruti’s pre-interest profits, taxes, depreciation, and reduced amount – the main profit margin – stood at 9.08%, exceeding analysts ‘estimates of 8.065%, according to IBES’ Refinitiv data. Car manufacturers around the world are raising prices to withstand the high cost of installation and the expected cost of goods. Maruti, which sells every second car in India and belongs to the majority of Japan’s Suzuki Motor Corp (7269.T). they have increased prices five times from January 2021 to April 2022, while reducing marketing costs and discounts.
Revenue generated 18.39 billion rupees (240.81 million) in the three months ended March 31, compared to 11.66 billion rupees last year. Analysts were expecting a profit of R14.74 billion. The company also recommended the allocation of 60 rupees per share, saying it was a “special one-time act”.
Global chip crunch has become a challenge for the automotive industry worldwide, with Maruti and his rivals Mahindra and Mahindra warning several times over the past year about the collision of monthly production. Maruti said customer bookings of about 268,000 vehicles are still pending in the year ending March 31, 2022 due to poor conditions. However, quarterly operating revenue reported an increase of 11.3% to 267.40 billion rupees. The company’s shares, which have risen about 17% since falling 10 months in mid-March, fell by 2.2% during a general sale on Friday.
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