Last week, Maruti Suzuki India published a report that shows a 3.4 per cent increase in their net profit with their earning set at 2,484.3 crore between the months of July and September. This quarter was a good one because of the decrease in non-operating income while the tax outgo is higher in comparison to the previous quarters of this year. This is good news for Suzuki motorcycle dealers as their sales for motorbikes have also gone up.
According to the largest car manufacturer in the country, their net sales have increased to 21,438.1 crore with a rate of increase at 21.8 per cent. The previous year they were able to record a net sales of only 20,048 crore.
According to R. C. Bhargava, the chairman of the company, the Profit After Tax has only increased by 3.4 per cent and the main contributor is the reduction of costs in terms of non-operating income since the yields from the investments were not good. The tax in return also increased for 2017 compared to last year where the company was able to avail of exemptions.
The company also took into consideration the expenses they have to allot for commodities as well as advertisements. For this year, they were able to be consistent with their goal of increasing their rate in a double digit as much as possible. Mr. Bhargava clarified that they are not waiting to have a growth of 19 or 20 per cent but as a whole, their future is looking bright. They are positive that the car market will continue to flourish based on the economic status of the country.
This is the first quarter since the Goods and Services Tax was put into motion. Suzuki and the entire automotive industry are quite ready with the effects of the new tax that is put in place. He added that they were able to rise after the GST was implemented.
For this quarter, they were able to sell 492,118 vehicles which is 17.6 per cent higher compared to previous year. The car market is not the only sector growing but Suzuki motorcycle dealers have attested to the growth of their industry.