Maruti Suzuki Q1 results: Net Profit grows 145% to Rs 2,485 crore; revenue rises 22% YoY

Sales in the domestic market totaled 434,812 units in the first quarter of FY24, a 9.1% increase over Q1FY23. 63,218 units were sold as exports, down from 69,437 in Q1FY23.

The biggest automaker in the nation, Maruti Suzuki India, declared a standalone net profit of 2,485.1 crore for the three months that ended in June 2023. In comparison to the same quarter previous year, when the company’s net profit was $1,012.8 crore, it increased by a strong 145%.

This was brought about by increased non-operating revenue, increased realization, increased cost-cutting efforts, and increased sales volume.

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However, from 2,623.6 crore in the March quarter, the company’s net profit decreased sequentially.

The auto major’s standalone revenue increased by 22% in Q1FY24 from 26.499 crore to 32.326.9 crore.

During the quarter, the company sold 498,030 vehicles in total, up 6.4% over the same time last year.

Sales in the domestic market totaled 434,812 units in the first quarter of FY24, a 9.1% increase over Q1FY23. 63,218 units were sold as exports, down from 69,437 in Q1FY23.

“Over 28,000 automobiles could not be produced this quarter due to a shortage of electronic components. At the conclusion of the quarter, there were around 355,000 pending customer orders, and the business is working to fulfill these orders quickly, according to a release from Maruti Suzuki India.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 56% to 2,983.1 crore from 1,912 crore, and the EBITDA margin increased by 200 basis points (bps) to 9.2% from 7.2% year over year, indicating an improvement in the company’s operational performance.

The company’s Board of Directors gave its approval for Suzuki Motor Gujarat Pvt Ltd (SMG) to exercise its option to purchase 100% of SMG’s shares from Suzuki Motor Corporation (SMC) and to terminate the contract manufacturing arrangement.

The business stated that Maruti Suzuki India Ltd. (MSIL) will need to virtually double its existing manufacturing capacity by the years 2030 and 31 due to the expanding Indian auto market and export possibilities.

The automobiles that were previously supplied by SMG as a contract manufacturer will now be supplied as before, therefore there won’t be any changes in terms of real production, logistics, sales, or the cost thereof, it noted.

On Monday, Maruti Suzuki’s stock price on the BSE closed 1.42% higher at $9,806.25 a share.