Maruti Suzuki Q1 Results: Auto Giant Reports 47% Growth In Net Profit; EBIT Margin Expands; Details

Maruti Suzuki India Ltd, India's largest carmaker, reported a 47% year-on-year growth in net profit for the first quarter of FY25, amounting to Rs 3,650 crore. This performance exceeded market expectations, buoyed by softer input prices that significantly boosted profitability.

The company's revenue for the April-June period rose by 10% to Rs 35,531 crore, up from Rs 32,327 crore in the corresponding quarter of the previous year. This growth was underpinned by a combination of higher vehicle sales and strategic cost management.

One of the standout aspects of Maruti Suzuki's financial performance was the expansion of its operating margin. The EBIT (Earnings Before Interest and Tax) margin increased by 390 basis points from the previous year, reaching 11.1%. This improvement was primarily driven by the softening of commodity prices, which reduced input costs. Additionally, the company's ongoing cost reduction efforts, favourable operating leverage, and positive foreign exchange movements further contributed to the margin expansion.

A significant inventory gain also boosted Maruti Suzuki's quarterly performance. The company reported an inventory gain of Rs 895 crore, a sharp rise from approximately Rs 100 crore in the same period last year.

Maruti Suzuki sold 5.22 lakh vehicles during the quarter, marking a 5% increase compared to the same period last year.

The positive financial results had an immediate impact on the stock market. On Wednesday, shares of Maruti Suzuki closed with gains of nearly 4%, trading at Rs 13,373 per share on the National Stock Exchange. Over the past year, the stock has delivered returns of more than 30%.