Maruti Q3 Results: Standalone net profit jumps 33%, beats estimates

Maruti Suzuki Q3 Preview: Maruti Suzuki India (MSIL) on Wednesday, January 31, reported a standalone net profit of Rs 3,130 crore for the third quarter of the current fiscal (Q3 FY24), up 33.11 per cent year-on-year (YoY) against Rs 2,351.3 crore logged in the corresponding quarter of the previous fiscal. Total revenue from operations increased 14.68 per cent YoY to Rs 33,308.7 crore against Rs 29,044.3 logged in the year-ago period.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, surged 38 per cent YoY to Rs 3,908 crore, while margins expanded to 11.7 per cent against 9.8 per cent in the year-ago period.

The bottom line beat analysts' estimates as Zee Business Research had estimated the auto major to register a standalone profit after tax (PAT) or net profit of Rs 2,950 crore for the quarter ended December 31, 2023, up 25.5 per cent YoY. The analysts expected the company to record a 15 per cent rise in quarterly revenue to Rs 33,400 crore. They had pegged a 34 per cent YoY increase in the carmaker's EBITDA at Rs 3,800 crore.

The company sold a total of 501,207 vehicles during the quarter. This suggests a 7.6 per cent growth in sales volume.

Despite the small car segment continuing to be subdued, Maruti registered sales of 429,422 units in the domestic market. The auto major exported 71,785 cars, its highest ever in any quarter. The same period in the previous year saw total sales of 465,911 units, comprising 403,929 units in the domestic market and 61,982 units in exports, the company said in its earnings release.

Another favourable development for the company during the quarter under review was a reduction in material costs, employee costs, and depreciation. However, non-operating income fell 20 basis points on a year-over-year basis to 2.9 per cent.

For the nine months (April–December), the company recorded its highest-ever nine-monthly sales volume, net sales, and net profit, as per its release.

The stock of the company, after the result announcement, traded over 1.5 per cent higher at Rs 10,107.65 on the BSE.

Further, the company's operating EBIT (earnings before interest and taxes) jumped 48.7 per cent YoY to Rs 3,156.2 crore.

Source: Earnings release