Maruti Suzuki Q2 profit leaps over fourfold to ₹2,061.5 cr; stock jumps 5%

Net profit of India's largest carmaker – Maruti Suzuki India Ltd – jumped more than fourfold to ₹2,061.5 crore during the second quarter compared with ₹475.3 crore in the corresponding period last year.

Revenue from operations grew around 46% year-on-year to ₹29,931 crore for the quarter ended September.

Reacting to the quarterly results, shares of the company rose 5.6% to ₹9,548 on the National Stock Exchange.

Maruti Suzuki sold a total of 5,17,395 vehicles during the quarter, the highest ever in any quarter, according to the company's stock exchange filing.

Sales in the domestic market stood at 454,200 units. Exports were at 63,195 units. Shortage of electronic components impacted production by about 35,000 vehicles in this quarter, the carmaker says.

The same period previous year was marked by acute shortage of electronic components and consequently, the company could sell a total of 379,541 units comprising 320,133 units in domestic and 59,408 units in export markets, it adds.

Pending customer orders stood at about 4,12,000 vehicles at the end of this quarter, out of which about 1,30,000 vehicle pre-bookings are for recently launched models.

Operating profit in the second quarter stood at ₹2,046.3 crore as against ₹98.8 crore in the corresponding quarter last fiscal.

The company, however, says the operating profit in Q2 of last year had dipped sharply owing to steep commodity price increases and electronic component supply constraints and hence results of Q2 FY23 are not strictly comparable with those of Q2 FY22.

Maruti Suzuki says it has been making simultaneous efforts in securing electronic components availability, cost reduction and improving realisation from the market to better its margins.

The carmaker registered its highest-ever quarterly net sales of ₹28,543 crore during the quarter compared with net sales of ₹19,297 crore in the year-ago period.

In the first six months of the ongoing fiscal, Maruti Suzuki sold a total of 985,326 units. Sales in the domestic market stood at 852,694 units. Exports in this half year were at 132,632 units. During the same period previous year (H1 FY22), the company registered a total sale of 7,33,155 units including 6,28,228 units in the domestic market and 104,927 units in the export market.

"In addition to electronic components shortage, the sales in H1 FY2021-22 were also severely affected due to Covid related disruptions and hence results of H1 FY2022-23 cannot be compared with those of H1 FY2021-22," the company further says.

The country's largest carmaker registered net sales of ₹53,829.8 crore in the first six months of FY23, which is the highest-ever half-yearly net sales. Net sales in H1 FY22 were at ₹36,096.5 crore.

India's largest passenger vehicle manufacturer last month started retail sales of its newest NEXA offering – the Grand Vitara, a cross-badge variant of the Toyota Urban Cruiser Hydryer.