Maruti Suzuki Q4 Results: Profit Rises 43% On Higher Sales, Realisations; Beats Estimates
The carmaker's net profit rose 43% year-on-year to Rs 2,623.6 crore in the quarter ended March, according to its exchange filing.
Maruti Suzuki India Ltd.'s net profit rose in the fourth quarter on higher sales and rising share of SUVs.
India’s largest carmaker’s net profit rose 43% year-on-year to Rs 2,623.6 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 2,565 crore consensus forecast of analysts tracked by Bloomberg.
Maruti Suzuki Q4 FY23 Highlights (YoY):
Revenue rose 20% to Rs 32,048 crore, against a forecast of Rs 32,365 crore.
Operating profit rose 38% to Rs 3,350.3 crore, against an estimate of Rs 3,418 crore.
Operating margin stood at 10.5%, against 9.1% last year and 10.6% estimate of analysts.
A shortage of semiconductors impacted the company’s production in both the quarter under review and the comparable period last year.
New model launches, such as a revamped Brezza and Grand Vitara, helped the carmaker register sales growth of 5.3% year-on-year to 5.15 lakh units, even as exports declined 5.5% to over 64,000 units in the quarter.
"In its 40th anniversary year, despite the shortage of electronic components, the company recorded its highest ever annual sales volume. The annual turnover of the company surpassed Rs 1 lakh crore mark," the company said in a release.
The expansion in margin was due to lower expenses. As a percentage of sales, the cost of materials and employee costs were lower by 80 and 40 basis points, respectively, as compared with the same period last year.
Capacity Expansion
The company’s board also approved a proposal to expand the annual production capacity by up to 10 lakh units amid rising demand. The investment and timelines for the capacity addition were not shared.
However, the company said it will use internal accruals for the investment.
The capacity expansion will aid 13 lakh units production in Manesar and Gurugram, along with vehicles supplied by Suzuki Motor Gujarat Pvt.
Due to disruption in supply, the company lost production of 1.7 lakh units in FY23, it said.
Shares of Maruti Suzuki were trading 0.4% higher, as compared with a 0.2% rise in the benchmark Nifty 50, as of 3.04 p.m.
