Maruti Suzuki Q1 Results: Net profit jumps 47% year-on-year to ₹3,650 crore

Maruti Suzuki India Ltd. has posted robust financial results for the first quarter of the fiscal year, surpassing expectations despite modest volume growth. The company’s performance was bolstered by cost-saving measures, favorable foreign exchange movements, and lower raw material costs.

Key Financial Highlights

– Net Profit: Increased by 47% year-on-year to ₹3,650 crore, beating the estimated ₹3,272 crore.

– Revenue: Rose by 10% to ₹35,531 crore, exceeding the forecast of ₹34,565 crore.

– EBITDA: Grew by 49.1% to ₹4,448.3 crore, outperforming the expected ₹3,986 crore.

– EBITDA Margin: Expanded by nearly 350 basis points to 12.5%, up from 9.2% in the same quarter last year.

Factors Contributing to Margin Expansion

– Raw Material Costs: Declined by 280 basis points, constituting 73.3% of net sales compared to 76.1% last year.

– Commodity Prices: Softening prices contributed to improved margins.

– Cost Reduction Efforts: Efficiency measures enhanced profitability.

– Favorable Operating Leverage: Increased scale of operations helped reduce per-unit costs.

– Foreign Exchange Gains: Beneficial currency movements aided financial performance.

Segment Performance

– Overall Volumes: Grew by 4.8% year-on-year, with total sales reaching 5.21 lakh units, up from 4.98 lakh units.

– UV Segment: Showed significant growth, with volumes increasing by 29%.

– Entry-Level Segment: Experienced a decline, with volumes falling by 4%.

Summary of Key Metrics

Maruti Suzuki’s Q1 results highlight the company’s strong operational efficiency and ability to manage costs effectively, positioning it well for future growth despite challenges in certain market segments.