Maruti Suzuki, India's leading car manufacturer, posted a 46.9 per cent year-on-year increase in standalone profit for the June quarter, amounting to ₹3,650 crore, exceeding the Street's estimate of ₹3,467 crore.
Quarterly revenue rose by 10 per cent from the same period last year to ₹35,531 crore, surpassing the estimated ₹34,565 crore.
Maruti Suzuki stock closed higher by 3.89 per cent in Wednesday's trading session at ₹13,375, against the previous close of ₹12,873 on Tuesday.
Maruti Suzuki reported a 46.9 per cent year-on-year (YoY) increase in standalone profit for the June quarter, reaching ₹3,650 crore, which exceeded the Street estimate of ₹3,467 crore. This was broadly on account of cost reduction efforts, favourable commodity prices and foreign exchange.
Quarterly revenue increased by 10 per cent compared to the same period last year, reaching ₹35,531 crore, which exceeded the projected ₹34,565 crore.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 49.1 per cent year-on-year to ₹4,448.3 crore, surpassing analysts' expectations of ₹3,986 crore.
The EBITDA margin for the quarter increased by nearly 350 basis points, reaching 12.5 per cent, compared to 9.2 per cent in the same quarter the previous year. Maruti Suzuki's margins were anticipated to improve by 220 basis points due to a lower base and reduced raw material costs.
The company sold 521,868 vehicles in the quarter, marking a 4.8 per cent increase compared to the same period last year. Domestic sales reached 451,308 units, rising by 3.8 per cent from Q1FY24, while export sales were 70,560 units, growing by 11.6 per cent over Q1FY24. The company reported net sales of ₹338,753 million for the quarter, up from ₹308,452 million in Q1FY2023-24.
Maruti Suzuki achieved this growth despite a modest 4.8 per cent year-on-year increase in volume during the June quarter. The company’s total volumes rose to 521,000 units from 498,000 units the previous year. Growth was concentrated in the rapidly expanding UV segment, whereas the entry-level segment experienced a decline.
The UV segment saw a volume increase of 29 per cent for the quarter, while the entry-level segment's volumes decreased by 4 per cent.
