Maruti to ramp up capacity as GST cuts boost demand

Posts record revenue in Q3 on small car sales; to add capacity of 500,000 units at two plants

- Ayaan Kartik [e-mail]

The maker of Grand Vitara recorded a 4% year-on-year rise in profit after tax to ₹3,879 crore.

(PT)

Country’s largest carmaker Maruti Suzuki India Ltd will add a capacity of 500,000 units over the next few months at its two plants in Haryana and Gujarat as it rushes to meet high demand after goods and services tax (GST) cuts delivered its highest ever quarterly revenue.

The maker of Grand Vitara recorded a 4% year-on-year rise in profit after tax to ₹3,879 crore, hit by a onetime provision of ₹593 crore owing to the new labour code. Revenue during the quarter surged 28% to ₹50,959 crore on the back of the highest-ever quarterly sales of 667,769 units.

The company told analysts during the earnings call on Wednesday that it is preparing to add a cumulative 500,000 capacity this year, 250,000 each at its Kharkhoda facility in Haryana by April, and an equal volume at Hansalpur in Gujarat soon after.