BENGALURU: Maruti Suzuki India Ltd beat quarterly profit estimates and reported improved margins on Tuesday as the country’s biggest carmaker benefitted from strong demand for its passenger cars, helped by festive sales.
Profit for Maruti, which has over 40% market share in the country’s passenger vehicles segment, more than doubled to 23.51 billion rupees ($288.5 million) in the quarter ended Dec. 31, from 10.11 billion rupees a year ago.
Analysts on average had expected a profit of 18.81 billion rupees, according to Refinitiv IBES data. Shares of the company, which kickstarts quarterly earnings for automakers, rose as much as 3.2% in afternoon trade, having risen over 2% in the past week. Maruti’s results are seen as a key indicator of private consumption in the country, with the auto sector carrying more than 50% weightage in calculating the country’s economic growth. Festive demand and improved availability of semiconductors pushed car sales up nearly 23% across companies last quarter, the Society of Indian Automobile Manufacturers has said.