Maruti Suzuki India Limited’s reported better-than-expected standalone net profit of Rs 3,130 crore in December quarter, up 33 percent from the year -ago period, on a favourable product mix, higher realisation and improved volumes. The company’s Profit After Tax (PAT) during the same quarter last year was Rs 2,351.3 crore.
The country’s largest carmaker’s revenue increased 15 percent to Rs 33,309.7 crore from Rs 29,044.3 crore in the year-ago period.
The results exceeded analysts’ expectations. The average estimate of seven brokerage firms pegged MSIL profit at Rs 2,838 crore, up 21 percent. Its revenue was projected to rise 15 percent on-year to Rs 33,385 crore.
Maruti Suzuki's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 38 percent on-year to Rs 3,909 crore from Rs 2,833 crore, YoY.
Its EBITDA margin improved by 190 basis points (bps) to 11.7 percent from 9.8 percent YOY due to softening of commodity prices, improved capacity utilisation, cost reduction efforts and improved realization.
MSIL revealed that it sold a total of 501,207 vehicles during the quarter, registering a growth of 7.57 percent from 465,911 units sold in the same period of the previous year.
Despite the small car segment continuing to be subdued, its sales in the domestic market increased 6.3 percent to 429,422 units from 403,929 units in the year-ago period. The company reported its highest-ever exports in any quarter during Q3FY24 at 71,785 units, up by 15.8 percent from 61,982 units YOY, as stated by the company.
At 2.15 pm, the stock was trading at Rs 10,124.90 on the National Stock Exchange, up 1.74 percent from the previous close.
According to Himanshu Singh, Research Analyst, Prabhudas Lilladher Pvt Ltd., "Gross margin was lower QoQ by ~30bps on lower capacity utilisation, but came higher than expected. Employee costs was slightly on the higher side while other expenses (including discounting) came slightly lower than expected. Higher other income increased the beat on PAT."
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