On the back of cost reduction efforts and favourable commodity prices, the country’s largest carmaker - Maruti Suzuki India (MSIL) - reported a 47% growth in its June quarter (Q1FY25) profit after tax (PAT) to Rs 3,650 crore. The street was expecting the carmaker to report a PAT of about Rs 3,450 crore in the reported quarter.
The carmaker had reported a PAT of Rs 2,485 crore during the same period last year. MSIL’s revenue grew by around 10% to Rs 35,531 crore in Q1FY25 from Rs 32,327 crore in the same quarter a year ago.
During the quarter, Maruti Suzuki sold a total of 521,868 vehicles, higher by 4.8% compared to the same period the previous year. Its export sales stood at 70,560 units, a growth of 11.6% over Q1FY24.
The volume and Maruti Suzuki’s expanding operating market was largely led by growing sales of SUVs as hatchback sales remained under pressure. The UV segment saw a volume increase of 29% in Q1FY25 while the entry-level segment's volumes decreased by 4%.
"EBITDA grew by 50.9% YoY while margin expanded significantly by 344 basis points (bps) YoY to 12.7%," said Swarnendu Bhushan, Head of Research at Prabhudas Lilladher.
He added, “It was a strong quarter from MSIL especially on the operational front which was largely driven by better operating leverage and mix improvement in domestic as well as international markets. Higher contribution of premium mix has led it to deliver all-time high realization and multi-year high EBITDA margin.”
Shares of Maruti Suzuki jumped 4% intraday to hit a record high of Rs 13,390. It settled 2.28% higher at Rs 13,167.95. MSIL shares are up 28.07% on a year-to-date (YTD) basis.