Maruti Drives To Record Profits in September Quarter, Reports 80% Jump in Net Profit

Maruti Suzuki India, the country's largest passenger car manufacturer, revved up its financial engines in the September quarter, reporting a stellar performance that surpassed market expectations. The company's net profit soared by 80%, thanks to a winning combination of a better product mix, increased volume growth, and several other favourable factors.

Maruti Suzuki India Ltd. reported a remarkable net profit of Rs 3,716.5 crore for the September quarter, marking an impressive 80% increase compared to the same period last year. This surge in net profit was also attributed in part to a significant boost in other income, which climbed to Rs 843.6 crore during the quarter, up from Rs 612.5 crore in the corresponding period of the previous year. Total revenue for the quarter stood at an impressive Rs 37,062 crore.

One of the standout features of Maruti Suzuki's performance was its operating profit or EBITDA, which reached Rs 4,784 crore, handily beating market expectations. The EBITDA margin for the quarter stood at 12.9%, expanding by a substantial 360 basis points on a year-on-year basis. This impressive performance was driven by improved realization, lower commodity prices, effective cost-reduction measures, increased sales volumes, and higher non-operating income. However, it was offset to some extent by higher depreciation and sales promotion expenses.

The company also managed to lower its raw material costs as a percentage of sales, reducing it by 300 basis points to 73.5% from 76.5% in the previous year.

In terms of unit sales, Maruti Suzuki reported a remarkable year-on-year growth of 6.7%, with sales of 5.52 lakh units, up from 5.17 lakh units in the same quarter last year. This growth was largely driven by an outstanding performance in the Utility Vehicle segment, which reported its highest-ever quarterly volumes. Maruti Suzuki's market share in the SUV segment reached 23.3% for the quarter, underlining its strong presence in this competitive segment. The company also celebrated its highest-ever quarterly sales of CNG vehicles, with nearly 1.18 lakh units sold.

Furthermore, Maruti Suzuki made significant strides in international markets by initiating exports of the Jimny-5 Door to Latin America, the Middle East, and Africa. The company's efforts paid off, as it continued to be the largest exporter of passenger vehicles from India, exporting nearly 69,000 units during the quarter.

The financial markets responded well to Maruti Suzuki's quarterly performance. The company's shares surged to a record high of Rs 10,817.30, marking a 3.8% increase, and showcasing the market's confidence in the automaker's growth trajectory.