Maruti Suzuki India Ltd.'s profit beat analysts' estimates in the second quarter, on higher sales and an increasing share of SUVs.
India's largest carmaker's net profit rose 80% to Rs 3,716.5 crore in the quarter ended September, according to an exchange filing on Friday. That compares with a Rs 3,041 crore consensus forecast of analysts tracked by Bloomberg.
Maruti Suzuki Q2 FY24 Key Highlights (Standalone, YoY)
Revenue rose 23.8% to Rs 37,062 crore (Bloomberg estimate: Rs 36,743 crore).
Ebitda rose 72.8% to Rs 4,784 crore (Bloomberg estimate: Rs 4,045 crore).
Ebitda margin stood at 12.9% vs 9.25% (Bloomberg estimate: 11%).
Total sales grew 6.7% year-on-year and nearly 11% sequentially to 5.52 lakh units in the quarter. The growth was driven by the new model launches including Grand Vitara, Jimny and Fronx.
The margin expanded significantly due to softening commodity prices, improved utilisation of manufacturing capacity and increased share of SUVs in the overall sales.
The raw material cost as a percentage of net sales fell to 73.5% in the September quarter, as compared with 76.5% last year.
The higher scale of production due to abating semiconductor issues also led to improvement in profitability.
As a result of higher deliveries, pending bookings will nearly halve to 2.15 lakh units by October-end as compared with 4 lakh units at its peak.
Maruti Suzuki's management sees a high possibility of reaching production of 2 million units in the ongoing fiscal.
Chairperson RC Bhargava said in a press conference that industry is expecting a stagnation in industry growth in the next fiscal due to slowdown in small car sales.
Maruti Suzuki, however, is not that pessimistic and sees growth next year as well, Bhargava said without specifying a number.
The company maintained that it will outperform industry growth and expects sale of 18 lakh units in the current fiscal.
Shares of Maruti Suzuki were trading 3.2% higher at Rs 10,759.9 apiece, after the results were announced, as compared with a 1.03% rise in the benchmark NSE Nifty 50 at 2.08 p.m.
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