On October 28, Maruti Suzuki India, the largest automaker in the nation, announced a staggering 334 percent year-over-year (YoY) increase in its standalone net profit for the quarter that ended in September of FY23 (Q2FY23) on a low basis.
Earnings had been hurt by higher material prices and worries about a chip shortage in the prior quarter. Healthy operating performance, sales volumes, and the top line, together with greater other income, helped to bolster the bottom line as both worries subsided.
In comparison to the same period last year, the standalone profit climbed to Rs 2,061.5 crore for the quarter from Rs 475.3 crore.
Operational revenue on its own increased by 46% year over year to Rs 29,931 crore.
Shares of the business increased by almost 4% in response to the earnings. The stock went up 3.64 percent to Rs 9,375 at 2:48 PM on the BSE.
In the three months that concluded in September of FY23, Maruti Suzuki sold a total of 5.17 lakh vehicles, the most ever in any quarter and up 36 percent year over year. This figure includes 4.54 lakh domestic sales and 63,195 units of exports.
Production was hindered by a shortage of electronic components by around 35,000 vehicles throughout the quarter, the business reported.
The company added that at the end of the September FY23 quarter, there were 4.12 lakh pending client orders, of which 1.3 lakh were pre-orders for freshly introduced models.
With a low foundation, the operational profit for Q2FY23, at Rs 2,046.3 crore, climbed approximately 21-fold from the same time the previous year.
According to Maruti, YoY results are not technically comparable because the operational profit in the prior period had decreased significantly as a result of substantial rises in commodity prices and supply bottlenecks for electronic components.
During the quarter, the operating profit margin increased significantly by 670 bps year-over-year to 7.2 percent.
“Relatively better sales volume leading to improved capacity utilisation, favourable foreign exchange variation, cost reduction efforts, and improved realisation boosted margin performance, though impacted by higher advertisement cost, and higher power & fuel expenses,” the company said.
Maruti reported a 236 percent YoY improvement in standalone profit for the six months ended in September FY23 at Rs 3,074.3 crore, and a 47 percent increase in operating revenue to Rs 56,430.6 crore compared to the same period last fiscal.
On the NSE, the stock increased 3% to Rs 9,305, with 10.46 lakh shares changing hands at the time this item was being written.
