Maruti profit declines 27% despite record quarterly sales

New Delhi: Record vehicle sales could not shield Maruti Suzuki from a sharp fall in quarterly profit as higher costs and investment losses squeezed earnings. India's largest carmaker reported standalone net profit of Rs 2,415 crore for July-Sept, down 27% year-on-year. Net sales rose 26% to a record Rs 50,616 crore, while vehicle sales increased 26.5% to an all-time quarterly high of over 6.9 lakh units.The earnings decline came as commodity inflation linked to West Asia disruptions pushed up costs. Total expenditure rose nearly 30% to Rs 50,604 crore, outpacing sales growth.Raw material and component expenditure increased 48% to Rs 37,488 crore amid higher production volumes and cost pressures. Operating profit fell 17% to Rs 2,804 crore from Rs 3,382 crore a year earlier.Mark-to-market losses on invested surplus added to the pressure, pulling non-operating income down to Rs 430 crore from Rs 966 crore.Demand remained strong, with small-car sales rising 35.9% and utility vehicle volumes growing 68.2%.Exports, however, declined to 1.08 lakh vehicles from 1.1 lakh vehicles in the corresponding quarter last year.Standalone revenue from operations, including servicing and ancillary income, increased to Rs 53,340 crore from Rs 42,332 crore. Consolidated net profit fell 26% to Rs 2,466 crore, while consolidated revenue reached Rs 53,356 crore. For April-Sept, standalone net profit declined 18% to Rs 5,767 crore from Rs 7,061 crore, reflecting sustained pressure on earnings despite the expansion in sales.You use AI every day. Now get your AI Quotient. Take the AIQ test.