Maruti Suzuki India’s Strong Second Quarter Results

Maruti Suzuki India recently released its second-quarter results, showcasing impressive growth and solid performance. Here are the key highlights:

Net Profit Surge

Maruti Suzuki’s net profit soared by an impressive 78% compared to the same period last year, reaching INR 37.64 billion ($451.6 million) for the quarter ended September 30th. The unconsolidated net profit stood at INR 37.165 billion, surpassing the estimate of INR 31.13 billion from analysts polled by FactSet.

Revenue Growth

The company experienced a remarkable 24% increase in revenue during the second quarter, amounting to INR 370.73 billion compared to the previous year.

Key Factors to Watch

Record Sales

Maruti Suzuki achieved exceptional sales performance in its second quarter, with a total of 552,055 vehicles sold, marking a 6.7% increase from the previous year. This record-breaking achievement can be attributed to the strong demand for sports utility vehicles, driven in part by the expansion of their product lineup.

Exports Growth

Maintaining its position as the leading exporter of passenger vehicles from India, Maruti Suzuki witnessed a 9.7% growth in exports during the second quarter. The company exported a total of 69,324 vehicles, showcasing its strong international presence.

Margin Improvement

Maruti Suzuki’s net-profit margin witnessed a significant boost, rising from 7.2% to 10.5% in the second quarter compared to the previous year. The company attributed this margin improvement to several factors, including reduced commodity prices, cost-cutting measures, and enhanced capacity utilization.