The country's largest car maker Maruti Suzuki on Friday reported net profit of Rs 2,061.5 crore for quarter ended September 2022, marking an increase of 4.33 times from profit of Rs 475 crore during the same quarter last year. The sharp surge in profit came on the back of better sales volumes, favorable foreign exchange variation, cost reduction efforts and improved realizations, the Delhi-based company said.
Its revenue from operations jumped 48 per cent, annually, to Rs 28,543 crore from Rs 19,298 crore.
During the quarter, Maruti Suzuki achieved highest-ever quarterly sales figure 517,395 vehicles with strong sales in domestic market. The Delhi-based company sold 454,200 units in the country while it exported 63,195 vehicles.
"Shortage of electronic components impacted production by about 35,000 vehicles in this quarter. The same period previous year was marked by acute shortage of electronic components and consequently the Company could sell a total of 379,541 units comprising 320,133 units in domestic and 59,408 units in export markets," Maruti Suzuki said in a press release.
Maruti Suzuki had a total pending order book of 412,000 cars at the end of September quarter out of which about 130,000 vehicle pre-bookings are for recently launched models, the country's largest car maker said.
Maruti's earnings before interest, taxes, depreciation and amortization (EBITDA) also known as operating profit came in at Rs 2,046 crore compared with Rs 98.8 crore in the year ago period.
“The Operating Profit in Q2 of last year had dipped sharply owing to steep commodity price increases and electronic component supply constraints and hence results of Q2 FY2022-23 are not strictly comparable with those of Q2 FY2021-22,” Maruti Suzuki said.
The Company has been making simultaneous efforts in securing electronic components availability, cost reduction and improving realization from the market to better its margins, Maruti added.
“Maruti Suzuki 2Q performance was better-than-street estimates. Its new models – New Brezza, New Baleno, and Vitara have been gaining good traction. Pending customer orders stood at about 412,000 vehicles at the end of the quarter, of which 130,000 units for the newly launched models. The company has addressed white spaces in its portfolio through the launch of Brezza and Grand Vitara. However, higher competition in the SUV space and slow revival in the entry segment still remains a concern," brokerage firm Prabhudas Lilladher said.
Maruti Suzuki shares surged 4 per cent to hit fresh 52-week high of Rs 9,464. The stock was top gainer in the Nifty 50 basket of shares post the earnings announcement.
