Record sales drive up Maruti Suzuki India profit 78% to all-time high
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Maruti Suzuki India (MSIL) posted its highest consolidated net profit of Rs 3,764.2 crore during the second quarter of 2023-24 (FY24). This comes in the backdrop of its highest-ever quarterly sales, a softening of commodity prices, cost reduction efforts, and favourable foreign exchange rates In Q2 of FY24, the company’s net profit increased by 78.2 per cent compared to the same period last year when it was Rs 2,112.50 crore.
India’s largest carmaker reported a 6.3 per cent year-on-year (Y-o-Y) increase in domestic passenger vehicle (PV) sales, at 482,731 units, in Q2 of FY24.
This growth in domestic sales was primarily driven by a remarkable 117.5 per cent surge in utility vehicle sales, while sales of mini, compact, and mid-sized cars fell during Q2.
MSIL declared that it attained leadership in the sports utility vehicle (SUV) segment due to its robust product line up.
The company now holds a 23.3 per cent share of the Indian SUV market.
Exports increased by 9.7 per cent Y-o-Y to 69,324 units in Q2 of FY24.
During the last quarter, MSIL expanded its export portfolio by shipping the Jimny to Latin America, the Middle East, and Africa, maintaining its pole position as India’s largest passenger vehicle (PV) exporter.
In Q2, the company attributed its margin improvement to five factors — improved realisations, softening commodity prices, cost-reduction efforts, relatively better sales volume and higher non-operating income.
Himanshu Singh, research analyst, Prabhudas Lilladher, said that MSIL’s margin improvement had an element of inventorisation (high-inventory levels) as well. This should get reversed in the coming quarters, he felt.
“Structurally, MSIL has successfully transitioned from primarily being in the small cars’ space to becoming a leader in the SUV segment. We see this trend continuing,” he added.
MSIL’s total income in Q2 surged by 24.1 per cent Y-o-Y to reach Rs 30,541.7 crore, while its total expenses for the same quarter increased by 18.6 per cent to Rs 27,925.6 crore.
Dhruv Mudaraddi, Research Analyst at StoxBox, pointed out that MSIL has improved EBITDA (earnings before interest, taxes, depreciation, and amortization) margins for seven consecutive quarters. This trend is a significant positive for the company, as it indicates that the margins are gradually returning to the earlier range of 13-15 percent observed in FY2014-16, he noted.
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After Haryana, the BJP would also sweep the upcoming assembly elections in Maharashtra and Jharkhand, BJP president J P Nadda asserted on Friday.
Nadda, who paid obeisance at the Shri Naina Devi temple here, said the people were happy with the performance of the BJP government at the Centre led by Prime Minister Narendra Modi.
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After the Haryana poll debacle, Congress MP and LoP Rahul Gandhi attended the review meeting called by party president Mallikarjun Kharge at his residence in Delhi. Among those present were the party's Haryana observers Ashok Gehlot, Ajay Maken, Deepak Babaria and KC Venugopal.
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Former US President Donald Trump, who is campaigning for another term in the White House, promised to introduce a system of "reciprocal tariffs" if re-elected. In an economic policy speech in Detroit on Thursday, the Republican candidate singled out India, claiming it imposes some of the highest tariffs on foreign goods among major global economies.
This is not the first time Trump has criticised India for its tariffs. Just last month, he called the nation a "big abuser" of US trade relations.
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Tamil Nadu Chief Minister M K Stalin has announced a bonus and ex-gratia for 2.75 lakh employees of state public sector undertakings and statutory boards for the 2023-24 fiscal.
Accordingly, all eligible workers of profit making PSUs under group C and D will be paid a minimum bonus of Rs 8,400 and a maximum of Rs 16,800, amounting to 8.33 per cent bonus and an ex-gratia of 11.67 per cent, an official release here said.
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