Shares of Maruti Suzuki India Limited were trading lower by half a percent on Monday's trade, despite the company's 58% rise in year-on-year profit after tax.
The country's largest passenger car maker on Friday reported a profit after tax of ₹1838.9 crore in the March quarter, up from ₹1,166.10 crore in the corresponding quarter last year, nearly 58 per cent rise year-on-year. The rise came on the back of price hikes and lower sales promotion costs.
Net sales increased 11.1 percent year on year to ₹25,514 crore, up from ₹22,958.60 crore in the previous quarter.
The operating earning before interest and tax (EBIT) margin was 7%, up from 5.4% in the year ago quarter and up 160 basis points year on year.
Maruti Suzuki sold 4,88,830 vehicles during the quarter, a 0.7% decrease from the same period last year. The sales in the domestic market stood at 4,20,376 units, a decline of 8% over that in Q4FY21. While sales in the export market were at 68,454 units, which is the highest ever in any quarter.
"The prices of commodities such as steel, aluminium, and precious metals witnessed an unprecedented increase during this year." The company was forced to increase the prices of vehicles to partially offset this impact. The company continued to work on cost reduction efforts to minimise the impact on customers," Maruti said.
Last month, Maruti said it would increase the prices of its entire model range due to a rise in input costs. The company has taken four price hikes totalling almost 9% since January 2021.
The corporation declared a dividend of ₹60 per share. This compares to a dividend of ₹45 per share for fiscal year 21.