Informist, Friday, Apr 26, 2024

--Maruti Suzuki Jan-Mar net profit 38.78 bln rupees

--Analysts saw Maruti Suzuki Jan-Mar net profit 40.81 bln rupees

--Maruti Suzuki Jan-Mar net profit 38.78 bln rupees vs 26.24 bln

--Maruti Suzuki Jan-Mar revenue 382.35 bln rupees

--Maruti Suzuki Jan-Mar revenue 382.35 bln rupees vs 320.48 bln

--Maruti Suzuki: Jan-Mar operating EBIT up 51.5% on year at 39.56 bln rupees

--Maruti Suzuki: Jan-Mar EBIT margin up 230 bps on year at 10.8%

--Maruti Suzuki: Better capacity utilisation, realisation aided Jan-Mar

--Maruti Suzuki: Low input costs, cost reduction efforts aided Jan-Mar

--Maruti Suzuki to pay 125 rupees/share dividend

--Maruti Suzuki: Jan-Mar volume 584,031 units, up 13.4% on year

--Maruti Suzuki: Jan-Mar exports 78,740 units, up 22% on year

--Maruti Suzuki FY24 net profit 132.09 bln rupees vs 80.49 bln

--Maruti Suzuki FY24 revenue 1.409 trln rupees vs 1.175 trln

--Maruti Suzuki: FY24 EBIT margin up 260 bps on year at 9.9%

--Maruti Suzuki: FY24 operating EBIT up 63.5% on yr at 133.79 bln rupees

--Maruti Suzuki: FY24 total sales 2.14 mln units, up 8.6% on year
--Maruti Suzuki: Kharkhoda plant first line to start ops before FY25-end

--Maruti Suzuki: Aim to manufacture 600,000 CNG cars in FY25

--Maruti Suzuki: So far faced no procurement issues due to W Asia crisis

By Darshan Nakhwa

MUMBAI – India's largest passenger vehicle manufacturer, Maruti Suzuki India Ltd, today reported a strong growth in key earnings metrics for Jan-Mar, driven by a double-digit growth in sales volume, higher average selling price, and softening of commodity prices. The automaker's net profit in Jan-Mar jumped 48% on year, but fell short of analsysts' estimates. The bottomline for the year ended Mar 31 rose 64% to an all-time high.

The company's net profit for Jan-Mar was 38.78 bln rupees compared to 26.24 bln rupees in the year-ago period. For 2023-24 (Apr-Mar), the bottomline was 132.09 bln rupees, against 80.49 bln rupees in the previous year. In the quarter ended March, the automaker's total revenue from operations rose slightly over 19% on year to 382.35 bln rupees. For the year ended Mar 31, the company's topline came in at 1.409 trln rupees, compared to 1.175 trln rupees in 2022-23.

Analysts had estimated the company's Jan-Mar topline at 388.18 bln rupees and bottomline at 40.81 bln rupees.

In Jan-Mar, factors such as 13.4% growth in vehicle despatches, with increased share of high-margin utility vehicles and top-end variants, and price hikes fuelled the company's revenue growth. Improvement in realisation, capacity utilisation and softening of commodity prices resulted in strong growth in margins, which boosted its net profit for the period. The bottomline was also boosted by other income, which grew 51% on-year to 11.18 bln rupees.

Maruti Suzuki dispatched a total of 584,031 vehicles in the March quarter, up from 514,927 units in the year-ago period. Domestic volume grew 12.2% to 505,291 units, while exports rose 21.7% to 78,740 units on a low base. Strong momentum in utility vehicle sales helped the company offset the weakness in the mini and compact segment.

In the March quarter, the company's utility vehicle sales in India rose almost 72% on year to 181,708 units. In comparison, it reported a nearly 9?cline in sales of mini, compact and mid-size vehicles. Over the last two years, Maruti Suzuki has launched several utility vehicles--Grand Vitara, Fronx, Jimny--to make the most of the shift in consumer preference to sport utility vehicles from hatchbacks and sedans.

Maruti Suzuki's operating earnings before interest and tax grew by almost 52% on year to 39.56 bln rupees in Jan-Mar. Its operating EBIT margin improved to 10.8% from 8.5% in the year-ago period. The profitability was driven by improved capacity utilisation, cost reduction efforts, softening of commodity prices and better realisations, while higher sales promotions and increase in manufacturing overheads were a drag.

For the year ended Mar 31, the company's operating EBIT margin improved to 9.9% from 7.3% in 2022-23. Its operating EBIT zoomed 64% to 133.79 bln rupees.

In Jan-Mar, the company's total expenditure grew by slightly over 16% on year to 343.55 bln rupees on account of an increase in expenses related to materials consumed and purchase of stock-in-trade. Cost of materials consumed rose slightly over 10% on year to 121.05 bln rupees. The purchase of stock-in-trade -- which was the biggest expense incurred by the company -- increased by 17% to 147.09 bln rupees. Similarly, other expense rose by nearly 20% to 49.50 bln rupees. The company's tax outgo for the March quarter was 11.20 bln rupees, up 77% from 6.31 bln rupees in the year-ago period.

Speaking to the media after Jan-Mar earnings, Maruti Suzuki's Chairman R.C. Bhargava said the expansion at its Kharkhoda plant is progressing smoothly, and the first line will start operations by the end of 2024-25. "After that, we should be able to add one new production line every 12 months. We have not been able to finalise our second site for the expansion program because before we could do that and sign all the necessary papers, the code of conduct came into force," he said.

The company also aims to manufacture 600,000 compressed natural gas-powered passenger vehicles in the ongoing financial year, up from 450,000 in 2022-23.

Responding to a question on the impact of geopolitical issues in West Asia on parts procurement and exports, Bhargava said, "So far, we have had no serious problems at all." Maruti Suzuki's board has recommended paying a dividend of 125 rupees per share. Today, shares of Maruti Suzuki closed 1.7% lower at 12,703.35 rupees on the National Stock Exchange. End

Edited by Deepshikha Bhardwaj

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