Maruti Suzuki Q3 Results: Small-Car Revival Props Up Profit, Revenue

Maruti Suzuki India Ltd. clocked growth in the fiscal third quarter that met analyst estimates, as a revival in small car sales and exports propped up the numbers.

Standalone net profit of India's largest carmaker by volume rose 12.6% year-on-year to Rs 3,525 crore in the three months ended Dec. 31, 2024, even as revenue increased 15.6% to Rs 38,492 crore, according to an exchange filing on Wednesday. That met analyst estimates compiled by Bloomberg.

Maruti Suzuki Q3 FY25 Results (Standalone, YoY)

• Revenue up 15.6% at Rs 38,492 crore (Estimate: Rs 38,436 crore)

• Ebitda up 14.4% at Rs 4,470 crore (Estimate: Rs 4,504.6 crore)

• Ebitda margin down 10 basis points at 11.6% (Estimate: 11.7%)

• Net profit up 12.6% at Rs 3,525 crore (Estimate: Rs 3,604 crore)

One basis point is one-hundredth of a percentage point.

Favourable operating leverage and higher non-operating income buoyed margins amid higher discounts and promotion expenses.

Bumper To Bumper

To be sure, October-December is a lucrative quarter for Indian automakers for it includes the festive season. Those 30–45 days alone account for a third of their annual sales.

In the three months ended Dec. 31, Maruti Suzuki's domestic sales rose 8.75% over the year-ago period to 4,66,993 units even as exports surged to an all-time high of 99,220 units.

But while October was outstanding due to festive demand and November underwhelming due to a festive hangover, December showed the first signs of revival in demand for small cars—the breadwinner for India's largest carmaker.

Sales of passenger cars surged 29% year-on-year to 62,324 units in the last month of 2024. The growth in SUV sales was relatively muted at 21.1%. 

Additionally, Maruti Suzuki clocked its best ever nine months in a fiscal; standalone net profit rose 9.8% to Rs 10,244 crore on the back of revenue that increased 8.3% to Rs 1,11,226 crore. Sales surged 5% year-on-year to 16,29,631 units.

Board Decisions

On Wednesday, the board of directors also gave its in-principle approval to merge wholly owned subsidiary Suzuki Motor Gujarat Pvt. with Maruti Suzuki. The move is aimed at simplifying the group structure and driving operational efficiencies. The paid-up capital of and Maruti Suzuki's investments in Suzuki Motor Gujarat now stand extinguished. There is no change in the shareholding pattern either.

As on March 31, 2024, Maruti Suzuki had total revenue from operations of Rs 1,40,932 crore as against Rs 39,406 crore for Suzuki Motor Gujarat. The net assets stood at Rs 89,982 crore and Rs 12,886 crore, respectively.

Separately, Hisashi Takeuchi was reappointed as the managing director and chief executive officer for three years, effective April 1.

Correction: Change in Ebitda margin