Maruti Suzuki Q1 results: Net profit jumps 145% to Rs 2,485 crore, margin improves by 200 bps

Maruti Suzuki India — the country's largest carmaker — on Monday reported a standalone net profit of Rs 2,485.1 crore for the quarter ended June 2023, marking a jump of 145.4 per cent compared with the corresponding period a year ago. Maruti Suzuki  — whose popular models include Baleno, Swift, WagonR, Brezza, Eeco, Dzire and Ertiga — said its profitability was driven by larger sales volumes, improved realisation, cost reduction efforts and higher non-operating income. 

Maruti Suzuki's revenue from operations came in at Rs 32,326.9 crore for the first quarter of the current financial year, as against Rs 26,499.8 crore for the year-ago quarter, according to a regulatory filing.

According to Zee Business research, Maruti Suzuki's quarterly net profit was estimated at Rs 2,520 crore and revenue at Rs 31,650 crore. 

The auto major's margin — a key measure of profitability — improved by 200 basis points on a year-on-year basis to 9.2 per cent. Zee Business analysts had pegged the margin at 10.6 per cent. 

Maruti Suzuki sold a total of 4,98,030 vehicles during the three-month period — an increase of 6.4 per cent compared with the quarter ended June 2022, according to a company statement. Sales in the domestic market grew 9.1 per cent to 4,34,812 vehicles, and exports came in at 63,218 units as against 69,437 units for the year-ago period, it said.

Maruti Suzuki said a shortage of electronic components led to over 28,000 vehicles not being produced during the quarter, with pending customer orders at about 3,55,000 vehicles at the end of June 30. The carmaker also said it is making efforts to serve these orders fast. 

Maruti Suzuki shares ended 1.4 per cent higher at Rs 9,806.3 apiece on BSE ahead of the earnings announcement. The Maruti Suzuki stock grew 18 per cent in the June quarter, outperforming a 10.5 per cent rise in the benchmark Nifty index. 

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