Maruti Suzuki’s Q1 FY2024 Net Profit Soars to Rs 2,485 Crore; Revenue up 22%

In a remarkable financial development, Maruti Suzuki India Ltd (MSIL) has reported a year-on-year (YoY) surge of 145.5% in its standalone net profit for the first quarter of FY24. The impressive Rs 2,485.1 crore result more than doubles last year’s Q1 earnings, primarily due to an increase in sales volume, improved realisation, cost reduction efforts, and higher non-operating income.

Maruti Suzuki Q1 FY2024

The company’s total sales, encompassing domestic and overseas markets, witnessed a growth of 6.4% at 498,030 units in Q1FY24, compared to 467,931 units sold during the same period in the previous year. Specifically, domestic sales rose to 434,812 units, indicating a strong home market performance. Despite a shortage of electronic components causing production delays for over 28,000 vehicles, MSIL’s robust sales volume has helped bolster the company’s financial performance.

Quarterly revenue also saw a significant YoY increase of 22%, rising to Rs 32,326.94 crore. Last year’s Q1 figures showed a profit after tax (PAT) of Rs 1,012.80 crore and net revenue from operations at Rs 26,499.8 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) saw a 56% YoY increase to Rs 2,983.1 crore, while the EBITDA margin rose by 200 basis points to 9.2%.

This financial performance has surpassed analysts’ expectations, with average estimates from five brokerage firms predicting a net profit of Rs 2,400 crore, marking a 142% increase over the previous year. The predicted 20% growth in revenue from operations also fell short of the actual 22% increase.

In addition to these financial results, the board of MSIL approved the termination of a contract manufacturing agreement with Suzuki Motor Gujarat Private Ltd (SMG) and announced its intention to acquire 100% shares of SMG from Suzuki Motor Corporation (SMC) before the end of March 2024. As per MSIL Chairman R C Bhargava, future EV production at the Gujarat facility will now be conducted by Maruti Suzuki instead of SMC, marking the only change to occur at the facility as a result of the ownership transfer.

The announcement of the Q1 financial results and the acquisition news led to a 1.42% increase in the company’s scrip, closing at Rs 9,806.25 per share on the BSE on July 31, 2023.

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Author: Sanjib SahaSanjib is a finance based writer who has a deep knowledge in stock market, cryptocurrency and mutual funds. He is also a co-founder of

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