Maruti Suzuki Q1 Results: Profit Misses Estimates Amid Cost Pressures, Supply Shortages
Net profit of India’s largest carmaker jumped 130% year-on-year to Rs 1,012.8 crore in the quarter ended June.
Maruti Suzuki India Ltd.’s quarterly net profit rose, aided by a low base and higher sales volumes even as input cost pressures and supply shortages persisted. The earnings, however, missed estimates.
Net profit of India’s largest carmaker jumped 130% year-on-year to Rs 1,012.8 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 1,569.6-crore consensus forecast of analysts tracked by Bloomberg.
Maruti Suzuki Q1 FY23 Highlights (YoY):
Revenue up 49% to Rs 26,499.8 crore, against the forecast of Rs 25,778.2 crore.
Operating profit stood at Rs 1,912.1 crore against Rs 821.1 crore a year ago.
Operating margin stood at 7.22% against 4.62% a year ago and 8.6% estimated.
During the first quarter, the maker of Brezza cars sold 32% more vehicles than the year ago. The second wave of the Covid-19 pandemic had disrupted operations in the corresponding year-ago period.
"Shortage of electronic components in this quarter resulted in about 51,000 vehicles not being produced," the company said in a press release. Maruti Suzuki had pending orders of 280,000 vehicles at the end of the quarter, it said.
The improvement in operating profit was witnessed despite high commodity prices impacting the profitability. The price hikes helped in partially offsetting this impact, the company said.
Shares of Maruti Suzuki were trading 1.8% up compared with a 0.9% rise in the benchmark Nifty 50 as of 3 p.m.