Maruti Suzuki India, the undisputed leader in the Indian automotive market, has reported a remarkable surge in profits for the third quarter of the financial year, propelled by an unprecedented demand for its Sport Utility Vehicles (SUVs). The company, celebrated for dominating car sales in India, has outperformed projections with its stellar performance in Q3, cementing its position as a market leader.
The festive season, a pivotal period in the third quarter, witnessed a robust surge in consumer spending, particularly on larger purchases. This resulted in an impressive 7.6% spike in Maruti’s total sales volume, clocking in at approximately 501,000 units. Notably, the demand for the more premium SUV models like the Grand Vitara and Brezza played a pivotal role in driving this growth.
Maruti Suzuki’s profit after tax for the three months ending on December 31st rose by a commendable 33%, amounting to 31.3 billion rupees ($377 million). While this marks a slower profit growth compared to the same quarter in 2021, it still surpasses analysts’ average expectations of Rs 29.25 billion. The decline in sales of smaller cars, including popular hatchbacks like the Baleno, contributed to this moderation in growth.
Revenue from Maruti Suzuki’s sales witnessed a robust 14.4% increase, reaching Rs 318.6 billion. The margin on earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded from 9.8% to 11.7% compared to the previous year. However, it experienced a slight dip from 12.9% in the September quarter. The contribution of high-end utility vehicles, particularly SUVs, to total passenger vehicle sales skyrocketed to approximately 39% in the December quarter, marking a significant increase from the 24% reported the previous year.
News In Shorts:
- Maruti Suzuki India reports a substantial increase in Q3 profits, driven by robust demand for SUVs.
- Total sales volume sees a 7.6% surge in Q3, primarily fueled by the popularity of pricier SUV models.
- Profit after tax rises by 33% to 31.3 billion rupees ($377 million), surpassing analyst expectations.
- Revenue from sales witnesses a 14.4% increase to Rs 318.6 billion, with EBITDA margin expanding to 11.7%.
