Maruti Suzuki Q4 Results: Profit Jumps 58% On Better Demand, Volumes
Maruti Suzuki’s net profit jumped 57.7% year-on-year to Rs 1,839 crore in the quarter ended March.
Maruti Suzuki India Ltd.’s fourth-quarter profit rose, beating estimates, aided by improved demand, higher volumes, cost cuts and price hikes.
Net profit for India’s largest carmaker jumped 57.7% year-on-year to Rs 1,839 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 1,482.1-crore consensus estimate of analysts tracked by Bloomberg.
Maruti Suzuki Q4 FY22 Highlights (YoY)
Revenue was up 11.3% at Rs 26,740 crore, compared with the Rs 26,662-crore estimate.
Earnings before interest, tax, depreciation and amortisation rose 55.6% to Rs 2,426 crore, against the Rs 2,173-crore forecast.
Ebitda margin stood at 9.1% against 8.29% a year ago and 6.71% in Q3. Analysts had pegged the metric at 8.15%.
The Gurugram-based automaker sold 488,830 vehicles during the fourth quarter, 0.7% lower over the year ago but up 11.6% sequentially. It sold a total of 13.65 lakh units in the fiscal ended March 2022 compared with 13.23 lakh units a year ago.
'No Butter' In Small Car Market
Maruti Suzuki has lost production of an estimated 2.7 lakh units due to chip shortage during the year.
The supply situation of electronic components continues to be unpredictable, and hence it might have some impact on the production volume in FY23, it has said.
The company is also grappling with a declining share in small car market, its bread and butter, as rising cost of vehicles and changing regulatory landscape hurt their affordability.
“There is no butter left in the small car market anymore,” RC Bhargava, chairman at Maruti Suzuki, said during post-earnings media briefing. “A lot of customers have dropped out of the market. Sales of hatchbacks have declined by over 25% in the last three years.” Price of small cars, according to him, have gone up 32% in the last three years.
The company, Bhargava said, will take appropriate measures to adjust to the market conditions and do what is needed to be done in terms of launches.
Shares of the company fell 1.39% after the results were announced compared with a 0.55% decline in the benchmark Nifty 50.