India’s Maruti tops Q3 revenue view on sturdy passenger automotive demand

© Reuters. FILE PHOTO: Corporate office of Maruti Suzuki India Limited is pictured in New Delhi, India, February 26, 2016. REUTERS/Anindito Mukherjee/File Photo

BENGALURU (Reuters) -Maruti Suzuki India Ltd reported better-than-expected quarterly profit on Tuesday, as the country’s biggest carmaker benefitted from strong demand for its passenger cars, sending shares up as much as 2.4%.

Profit for Maruti, which has over 40% market share in the country’s passenger vehicles segment, came in at 23.51 billion rupees ($288.53 million) for the quarter ended Dec. 31, compared with 10.11 billion rupees a year ago.

Car sales in the country are up nearly 23% this quarter from a year ago, aided by festive demand and improved availability of semiconductors, the Society of Indian Automobile Manufacturers has said.

Maruti, majority owned by Japan’s Suzuki Motor Corp, sold 465,911 vehicles in the quarter, up from 430,668 units the same quarter last year.

The company said it had about 363,000 pending orders, out of which about 119,000 orders were for newly launched models.

Analysts on average had expected the company to report a profit of 18.81 billion rupees, according to Refinitiv IBES data.

($1 = 81.4825 Indian rupees)

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