Maruti Suzuki Q1 Results: Net profit jumps 145% to ₹2,485 crore; revenue rises 22% YoY

Maruti Suzuki India, the largest passenger car manufacturer in the country, reported a standalone net profit of ₹2,485.1 crore in the quarter ended June 2023. The company’s net profit jumped by a robust 145% as compared to ₹1,012.8 crore in the same quarter last year.

This was on account of larger sales volume, improved realization, cost reduction efforts and higher non-operating income.

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

The auto major’s standalone revenue in Q1FY24 grew 22% to ₹32,326.9 crore from ₹26,499 crore, YoY.

The company sold a total of 498,030 vehicles during the quarter, higher by 6.4% compared to the same period previous year. 

During the first quarter of FY24, the sales in the domestic market stood at 434,812 units, up by 9.1% over that in Q1FY23. The export sales were at 63,218 units as compared to 69,437 units in Q1FY23. 

Also Read: Maruti Suzuki sold 4,98,030 total vehicle sales in Q2, reports 6.4% annual rise

“Shortage of electronic components in this quarter resulted in over 28,000 vehicles not being produced. Pending customer orders stood at about 355,000 vehicles at the end of the quarter and the company is making efforts to serve these orders fast,” Maruti Suzuki India said in a release.

Operational performance of the company improved as the earnings before interest, taxes, depreciation and amortization (EBITDA rose 56% to ₹2,983.1 crore from ₹1,912 crore, while EBITDA margin expanded by 200 basis points (bps) to 9.2% from 7.2%, YoY.

The Board of Directors of the company approved termination of the contract manufacturing agreement and exercising the option to acquire 100% shares of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation (SMC).

Read here: Maruti Suzuki to terminate manufacturing agreement with Suzuki Motor Gujarat

“With the growth of the Indian car market and export potential, Maruti Suzuki India Ltd (MSIL) would need to increase its production capacity to about 4 million cars per annum by 2030-31, almost double from current levels,” the company said.

In terms of actual production, logistics, sales and the cost thereof, there will be no change as the cars earlier supplied by SMG as a contract manufacturer, will now continue to be supplied as before, it added.

On Monday, Maruti Suzuki share price ended 1.42% higher at ₹9,806.25 apiece on the BSE.

Read all Q1 results here