Maruti Suzuki Q1FY25 net profit surges 47% to ₹3,650 Crore

2 Aug 2024 , 03:12 PM

Maruti Suzuki India Ltd posted a significant 47% year-on-year increase in Q1FY25 net profit, reaching ₹3,650 Crore. This growth exceeded market expectations, driven by cost reduction efforts, favorable commodity prices, and foreign exchange benefits. In the same period last year, the company’s Profit After Tax (PAT) was ₹2,485.1 Crore.

Revenue for the April-June quarter rose by 9.9% to ₹35,531.4 Crore from ₹32,326.7 Crore in the same quarter a year ago. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for Maruti Suzuki increased by 49.1%, reaching ₹4,448.3 Crore. The operating margin expanded by nearly 350 basis points, reaching 12.5%, compared to 9.2% in the previous year.

At the time of writing on August 02, 2024 at 3:03 pm, shares of Maruti Suzuki India Ltd is trading at ₹12,746 which is a 4.59% gain than the previous close. Maruti Suzuki India Ltd stock has gained a total of 32% in the last one year, and 23% in the last one year.

The company attributed this margin improvement to cost reduction efforts, favorable operating leverage, and positive foreign exchange movements. Maruti Suzuki also reported an inventory gain of ₹895 Crore during the quarter, a significant increase from about ₹100 Crore a year ago.

Vehicle sales for the quarter totaled 521,868 units, marking a 4.8% increase compared to the same period last year. Domestic sales rose by 3.8% to 451,308 units, while export sales increased by 11.6% to 70,560 units. Net sales for the quarter were reported at ₹33,875.3 Crore, up from ₹30,845.2 Crore in Q1 FY 2023-24.

Maruti Suzuki India Limited is a subsidiary of the Japanese automaker Suzuki Motor Corporation. Founded in February 1981 as a joint venture with the Government of India, Maruti opened its first production facility in Gurugram, Haryana, in 1982. Initially, the Indian government held a majority stake, with Suzuki holding 26%. The government gradually reduced its stake, eventually selling all remaining shares to Suzuki Motor Corporation in 2007.