The country's largest carmaker Maruti Suzuki India on January 28 reported a 5.10 percent year-on-year increase in third quarter (October-December) profit despite lower tax cost, dented by lower other income, higher sales promotion expenses and depreciation.

The company’s profit during the quarter increased to Rs 1,564.8 crore from Rs 1,489.3 crore in the same period last year.

"Profit growth YoY was on account of cost reduction efforts, lower operating expenses, lower commodity prices and reduction in corporate tax rate, partially offset by higher sales promotion expenses, higher depreciation, and lower fair value gains on invested surplus," Maruti said in a BSE filing.

Revenue from operations grew by 5.3 percent year-on-year to Rs 20,707 crore in the quarter, with total vehicles sales growth at 2 percent.

Realisations declined 5.7 percent sequentially to Rs 4.7 lakh per unit during the December quarter.

On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8.9 percent to Rs 2,102 crore and margin maintained at 10 percent level, rising 30bps YoY to 10.1 percent compared to the year-ago period, dented by lower realisation.

The increase in material cost at 76.3 percent of sales (against 74 percent YoY) also hit operating income.

Souce: MONEYCONTROL.COM