Maruti Suzuki India reported a decline in first-quarter profitability despite strong revenue growth, as a sharp rise in material costs weighed on operating performance and compressed margins. The country's largest carmaker posted a net profit of Rs 3,352 crore for the quarter, down 10.8% from Rs 3,758 crore in the corresponding period last year.
Revenue from operations rose 35.9% year-on-year to Rs 52,456 crore, compared with Rs 38,593 crore in the year-ago quarter, reflecting healthy sales growth during the period. Operating performance, however, came under pressure. Ebitda declined 14.5% year-on-year to Rs 4,312 crore from Rs 5,043 crore, while the Ebitda margin narrowed sharply to 8.2% from 13.1% a year ago.
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The decline in profitability was primarily due to a steep increase in input costs. Cost of materials surged 46% year-on-year to Rs 32,000 crore, offsetting the benefits of higher sales and weighing on operating margins.
Maruti Suzuki Q1 Result Highlights (Cons, YoY)
- Net Profit down 10.8% at Rs 3,352 crore versus Rs 3,758 crore.
- Revenue up 35.9% at Rs 52,456 crore versus Rs 38,593 crore.
- Ebitda down 14.5% at Rs 4,312 crore versus Rs 5,043 crore.
- Margin at 8.2% versus 13.1%.
Despite the pressure on earnings, Maruti Suzuki delivered a strong operational performance during the quarter.
The company recorded its highest-ever quarterly total sales volume of 682,724 units, up 29.3% year-on-year. Exports increased 28.6%, while SUV sales rose 44.6%, reflecting sustained demand for the company's utility vehicle portfolio.
Net sales grew 36.4% during the quarter, supported by healthy domestic volumes and overseas shipments.
Maruti Suzuki also strengthened its leadership position in the domestic passenger vehicle market, with market share improving to 41.2%, a gain of 2.3 percentage points from a year earlier. The company attributed the increase to strong growth in both its small car and SUV segments.
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