Maruti Suzuki Q1FY25 net profit jumps 47% to Rs 3,650 crore, beats estimates

Maruti Suzuki Q1 results declared

Maruti Suzuki India Ltd reported its Q1FY25 net profit grew 47 percent year-on-year to Rs 3,650 crore, beating market expectations, as cost reduction efforts, favourable commodity prices and foreign exchange boosted its bottomline. Its Profit After Tax (PAT) during the same period last year stood at Rs 2,485.1 crore.

The country’s largest carmaker's April-June revenue rose 9.9 percent to Rs 35,531.4 crore from Rs 32,326.7 crore in the same quarter a year ago.

A Moneycontrol poll of eight brokerage estimates pegged Maruti Suzuki's fiscal first quarter net profit at Rs 3,235 crore and revenue at Rs 34,566 crore.

The New Delhi-headquartered Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 49.1 percent to Rs 4,448.3 crore. The
operating margin for the quarter expanded by nearly 350 basis points, reaching 12.5 per cent, compared to 9.2 per cent in the same quarter the previous year.

Cost reduction efforts, favourable operating leverage, and favourable foreign exchange movement also aided margins, Maruti Suzuki said in an investor presentation.

Maruti Suzuki saw an inventory gain of Rs 895 crore during the quarter, rising from  about Rs 100 crore a year ago, showed the financial results.

During the quarter, Maruti Suzuki sold a total of 521,868 vehicles, higher by 4.8 percent compared to the same period the previous year. Its sales in the domestic market during the same period stood at 451,308 units, up by 3.8 percent over that in Q1FY24. Its exports sales stood at 70,560 units, a growth of 11.6 percent over Q1FY24.

The company reported net sales of Rs 33,875.3 crore for the quarter, up from Rs 30,845.2 crore in Q1 FY 2023-24.

On July 31, Maruti Suzuki's shares rose 3.67 percent on NSE to Rs 13,346.05 after the results announcement.