Automobile Giant Maruti Suzuki's Q3 Profit Surges 33% YoY, Beats Street Estimates, Shares Jump

Maruti Suzuki India, the leading carmaker has reported a remarkable 33% surge in standalone net profit for the third quarter of FY24, reaching Rs 3,130 crore. This performance is attributed to the robust demand for the company's sport utility vehicles (SUVs).

The company's Q3FY24 standalone revenue from operations witnessed a substantial increase of 14.68%, reaching Rs 33,308.7 crore compared to Rs 29,044.3 crore in the same period the previous year. Maruti Suzuki's strategic focus on SUVs seems to be paying off handsomely, reflecting a strategic alignment with consumer preferences.

During the December quarter, Maruti Suzuki achieved a total sales figure of 5,01,207 vehicles, marking a commendable growth of 7.57% from the 4,65,911 units sold in the corresponding period of the previous year. Despite a subdued small car segment, the company experienced a 6.3% surge in domestic market sales, reaching 4,29,422 units compared to 4,03,929 units year-on-year.

Notably, Maruti Suzuki set a new record in Q3FY24 by achieving its highest-ever exports, with 71,785 units shipped internationally. This represents a substantial 15.8% increase from the 61,982 units exported in the same period last year, showcasing the company's expanding global footprint.

Maruti Suzuki reached an annual sales milestone of 2 million units in the calendar year 2023, highlighting the company's sustained growth trajectory and market dominance.

The financial metrics further underscore Maruti Suzuki's exceptional performance. Earnings before interest, tax, depreciation, and amortization (EBITDA) witnessed a 38% increase, rising from Rs 2,833 crore to Rs 3,908 crore year-on-year. The EBITDA margin also improved significantly, climbing 190 basis points to 11.7% from 9.8% in the corresponding period, driven by factors such as the softening of commodity prices, enhanced capacity utilization, rigorous cost reduction efforts, and improved realization.

Investors are responding positively to Maruti Suzuki's stellar results, with the company's shares trading with gains of more than 2% at Rs 10,148.70 per share as of 3 pm on the National Stock Exchange (NSE). Over the last year, the stock has recorded gains of nearly 13%.