Maruti Suzuki Q1 Results: Net profit jumps 145% to ₹2,485 crore

Maruti Suzuki, the prominent automaker in India, reported its Q1 FY24 earnings after the market closed on the last day of July 2023, that is, July 31. 

The company reported a standalone net profit of Rs 2,485 crore in the quarter ended June 2023. This represents a significant jump in net profit of 145% compared to Rs 1,012.8 crore in the same quarter last year. 

The remarkable growth was driven by increased sales volumes, improved realization, cost reduction initiatives, and higher non-operating income. 

When comparing the net profit on a sequential basis, it has declined by 5.3% from Rs 2,624 crore in the last quarter of FY23 to Rs 2,485 crore in the June quarter. 

Moving on to the top line, the company posted revenue of Rs 32,327 crore, representing a YoY growth of 22% from Rs 26,500 crore in the same quarter last year. On a sequential basis, the revenue remained flat, growing by 0.87% from Rs 32,048 crore to Rs 32,327 crore. 

Additionally, the company reported other income of Rs 1,001 crore. The operating profit recorded by the company is Rs 2,983 crore, along with a margin of 9% during the same period. 

Regarding the number of units sold during the quarter, the volume grew by 6.4%, from 4,67,931 vehicles in the previous quarter to 4,98,030 vehicles in the current quarter. 

Furthermore, when breaking down the sales numbers into domestic sales and export numbers, the company recorded domestic sales growth of 9.7% in Q1 FY24, with a total of 4,34,812 units sold. However, export sales declined by 9% to 63,218 units, compared to 69,437 units in Q1 FY23. 

In a release, Maruti Suzuki India stated that a shortage of electronic components during this quarter led to a production shortfall of over 28,000 vehicles. As a result, pending customer orders reached approximately 355,000 vehicles at the end of the quarter. The company is currently putting efforts to fulfil these orders as swiftly as possible.

The company’s Board of Directors has given approval for terminating the contract manufacturing agreement and exercising the option to acquire 100% shares of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation (SMC). 

Currently, while writing this article, the shares of Maruti Suzuki are trading at approximately Rs 9814, almost flat from their previous day’s closing price of Rs 9819.55 on the BSE. 

Furthermore, the shares have generated a return of only 14% in the last three months, and in the last one year, it has generated a mere 14%. 

On July 05, 2023 the shares of the company hit a significant milestone of Rs 10,000 per share mark. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.