The largest car maker in India, Maruti Suzuki, announced on Friday that its standalone net profit for the quarter ended September 30 increased by 80.3% year over year to Rs 3,716.5 crore. The company attributed this increase to increased net sales, a decline in commodity prices, cost-cutting measures, and higher non-operating income.
The profit after tax (PAT) for the same period in the previous year was Rs 2,061.5 crore for the manufacturer of well-known automobile models like Baleno and Invicto.
In a statement, Maruti Suzuki said that this quarter’s sales volume, net sales, and net profit were all at record highs.
Operations’ revenue climbed 23.8% to Rs 37,062 crore from Rs 29,930.8 crore in the same period last year.
Maruti’s operating profit, or earnings before interest, taxes, depreciation, and amortization, or EBITDA, increased by 72.8% to Rs 4,784 crore in Q2 over Rs 2,769 crore in the same period in the previous fiscal year.
The company sold 552,055 units during the quarter, of which 482,731 were sold in the domestic market and 69,324 were exported.
The total sales were up by 6.7 per cent from 517,395 units sold in Q2 FY2022-23. There are 63,195 units in international markets and 454,200 units in the home market.
Auto analysts claim that the second quarter’s large increase in volume was mostly caused by the introduction of new SUVs and sales of entry-level vehicle models at reduced prices.
The increase in Maruti Suzuki’s margin was also attributed to inventorization, or high inventory levels, according to Himanshu Singh, research analyst at Prabhudas Lilladher. However, this trend should be corrected in the next few quarters.
“Structurally, MSIL was successful in shifting from mainly being in the small cars space to developing into a leader in the SUV segment as well, and we see this trend persisting,” he said.
