Maruti Suzuki India, the leading passenger car manufacturer in India, posted a standalone net profit of ₹2,485.1 crore in the quarter ending June 2023, witnessing a substantial 145% increase compared to ₹1,012.8 crore in the same quarter last year. This remarkable growth can be attributed to higher sales volume, improved realization, cost reduction efforts, and increased non-operating income.
However, the company’s net profit declined sequentially from ₹2,623.6 crore in the March quarter. Despite this, their standalone revenue in Q1FY24 saw a notable 22% growth, reaching ₹32,326.9 crore from ₹26,499 crore in the previous year.
Maruti Suzuki India sold a total of 498,030 vehicles during the quarter, marking a 6.4% increase over the same period last year. The domestic market accounted for 434,812 units, showing a 9.1% growth over Q1FY23, while the export sales stood at 63,218 units, down from 69,437 units in Q1FY23. The company faced challenges due to a shortage of electronic components, resulting in the non-production of over 28,000 vehicles. Consequently, pending customer orders reached approximately 355,000 vehicles by the end of the quarter.
On a positive note, the operational performance of the company improved, with EBITDA rising by 56% to ₹2,983.1 crore and EBITDA margin expanding by 200 bps to 9.2% YoY.
The Board of Directors of Maruti Suzuki India approved the termination of the contract manufacturing agreement and decided to acquire 100% shares of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation (SMC).
Considering the growth of the Indian car market and export potential, Maruti Suzuki India Ltd (MSIL) intends to increase its production capacity to about 4 million cars per annum by 2030-31, almost double its current levels.
The shares, on Tuesday, Maruti Suzuki’s share price closed 1.06% lower at ₹9,716.75 apiece on the NSE.