NEW DELHI: On the back of robust sales volume and favourable commodity prices, the country’s largest car maker - Maruti Suzuki India Ltd (MSIL) - on Friday reported a 48% increase in net profit for the March quarter of FY24 (Q4FY24) to Rs 3,878 crore.
The auto major had reported a net profit of Rs 2,624 crore in the year-ago period. MSIL registered revenue of Rs 38,235 crore in Q4FY24 as against Rs 32,048 crore clocked in the same quarter last fiscal. Additionally, MSIL declared the company’s highest-ever dividend of Rs 125 per share.
Aided by increasing demand for SUVs, the maker of Baleno, Brezza and Grand Vitara models, sold 584,031 units in the March quarter, a jump of 13% year-on-year. For the first time, the company surpassed the annual total sales milestone of 2 million (20 lakh) units in the Financial Year 2024. For the entire FY24, MSIL’s net profit grew by 64% to Rs 13,209 crore as against Rs 8,049 crore in FY23. Total revenue surged 20% to Rs 140,933 crore in the recently concluded fiscal as compared to Rs 117,523 crore during FY23.
MSIL Chairman RC Bhargava said the car industry will continue to flourish. He believes that the new government which is coming up in less than two months will propel the economy to phenomenal levels. “The new government will have a very good base to go forward,” said Bhargava even as many in the industry have forecasted a low single-digit growth for the ongoing fiscal.
Bhargawa also said MSIL is working closely with Suzuki Japan to achieve the target of four million car sales and export 750,000 - 800,000 units by FY30-31. He informed that MSIL’s expansion plan at Kharkoda is proceeding smoothly and the first line is expected to start production before the end of this financial year and they should be able to add one new production line every 12 months or so.
The carmaker, which tasted with the hybrid technology, said Suzuki Japan is working on affordable hybrid solutions for compact cars. Suzuki is also considering plug-in hybrid technology for the future.
On falling EV sales in the global market, Bhargava said that EVs are one of the key technologies for reaching the carbon neutrality goals.
“All carmakers have accepted that they have to have EVs. How fast the market for EVs will grow is not only in the hands of manufacturers. It depends on the customers, the infrastructure and the government policies as well,” stated Bhargava. MSIL is expected to launch its first EV in FY25.