Maruti Suzuki India Limited (MSIL), a prominent name in the Indian automobile industry, has reported a robust financial performance in the first quarter of FY24. The company’s strong performance is attributed to factors such as increased sales volume, improved realization, cost reduction efforts, and higher non-operating income. This article provides an overview of Maruti Suzuki’s Q1 FY24 performance, highlighting its impressive growth in net profit and revenues.
Maruti Suzuki’s Q1 FY24 Performance: Maruti Suzuki recorded a significant year-on-year rise of 145.5 percent in its standalone net profit for the first quarter of FY24. The net profit amounted to Rs 2,485.1 crore, reflecting the company’s exceptional financial performance during this period. This surge in profits can be attributed to a combination of factors, including increased sales volume, improved realization, cost reduction initiatives, and higher non-operating income.
Revenue Growth: During the first quarter of FY24, Maruti Suzuki witnessed a remarkable 22 percent year-on-year growth in revenue. The total revenue for the quarter reached Rs 32,326.94 crore, showcasing the company’s ability to achieve substantial growth in its top line. Analysts credit this strong financial performance to a blend of healthy volume growth, price hikes, and a diverse product mix.
EBITDA Margin Expansion: Maruti Suzuki’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a remarkable 56 percent year-on-year surge, totaling Rs 2,983.1 crore. This increase in EBITDA also led to an expansion of the EBITDA margin by 200 basis points to 9.2 percent compared to the previous year. The improved EBITDA margin underscores the company’s efficient cost management and operational performance.
Comparative Performance: In the corresponding quarter of the previous fiscal year (Q1 FY23), Maruti Suzuki reported a Profit After Tax (PAT) of Rs 1,012.80 crore, with net revenue from operations amounting to Rs 26,499.8 crore. The Q1 FY24 performance clearly indicates a substantial growth trajectory compared to the previous year’s figures.
Market Expectations Exceeded: The actual financial results of Q1 FY24 exceeded analysts’ expectations. Five brokerage firms estimated a net profit of Rs 2,400 crore for Maruti Suzuki, reflecting a remarkable 142 percent increase over the previous year’s Rs 1,012 crore. The average revenue estimate for operations stood at Rs 25,500 crore, marking a substantial 20 percent growth from the previous year.
Sales Performance: Between April and June 2023, Maruti Suzuki recorded a 6.4 percent increase in total sales, both in domestic and overseas markets. The company sold 4,98,030 units during this period, compared to 4,67,931 units in the same period the previous year. Domestic sales for Q1 FY24 reached 4,34,812 units, surpassing the 3,98,494 units sold in the corresponding period of the previous year.
Maruti Suzuki’s remarkable Q1 FY24 performance showcases its resilience and strategic approach in a challenging market environment. The substantial increase in net profit, revenue growth, and improved EBITDA margin underscore the company’s ability to adapt to changing dynamics while maintaining strong financial health. As the company addresses challenges related to electronic component shortages and advances its plans for electric vehicle production, its performance remains closely watched in the automotive industry.
