Maruti Posts Massive 46.7% Growth In Operating Profit For Q4 FY23 Due To Higher Sales

India's largest automotive manufacturer, Maruti Suzuki Limited posted a massive growth of 46.7 per cent in operating profit for Q4 FY23 to Rs 26,111 million from Rs 17,796 million in Q4FY22. It was on account of higher sales volume, improved realization from the market, and favourable forex movement, but was below the market estimates.

For the quarter the company recorded total sales volume of 5,14,927 vehicles at the end of Q4FY23. It was up 5.3 per cent over 4,88,830 vehicular sales corresponding to the same period previous year.

While net sales were registered at Rs 3,08,218 million, an increase of 20.8 per cent as compared to Rs 2,55140 million last year, as per the press release filed by the auto player on the securities exchange on Wednesday.

Also, quarter on quarter(QOQ) the total sales and net sales were up by 10.5 per cent and 10.7 per cent respectively. It was on account of relatively better sales volume leading to improved capacity utilisation and lower sales promotion expenses.

For the quarter the operating profit stood at Rs 26,111 million, a massive growth of 46.7 per cent over that of Rs 17,796 million in Q4FY22 and it rose by 23 per cent over December quarter's profit of 21,230 million.

The profit after tax (PAT) has also soared higher by 42.7 per cent for the quarter to Rs 26,236 million, compared to Rs 18,389 million reported last year. Over the previous quarter's PAT of Rs 23,513 million, it has increased by 11.6 per cent.

Performance for full year for FY2022-23
For the full year FY2022-23, Maruti Suzuki Limited registers highest-ever annual sales volume, exports, turnover and net profit. The company sold a total of 1,966,164 vehicles during the year despite missing production of about 170,000 units due to shortage of electronic components. This translated to a growth of 19 per cent over FY2021-22 sales volume of 1,652,653 vehicles.

Sales volume in the year comprised 1,706,831 units in the domestic market and highest-ever exports of 259,333 units. A total of 8,63,029 compact cars were sold the most during the year followed by 3,66,129 utility vehicle sales in domestic market.

The company recorded an operating Pprofit of Rs 81,844 million in FY2022-23 as against Rs 29,147 million in FY2021-22. With this, the net profit for the year rose to Rs 80,492 million from Rs 37,663 million in FY2021-22.

Dividend details
In the board meeting held in the afternoon on Wednesday, the directors recommended highest-ever dividend of Rs 90(900 per cent) per share for face value of Rs 5 each for the fiscal year FY2023 compared to Rs 60 per share in FY 2021-22.

The company has a good track record of paying dividends in last five years. Based on the latest stock price of Rs 8503.15, the dividend yield results to 1.06 per cent for the year.

Share price movement
The share price of Maruti Suzuki Limited has closed higher by 0.26 per cent over previous day's closing. In last one year it has rallied by 7.62 per cent while over three years it has surged by 68.53 per cent.