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Informist, Wednesday, Jan. 29, 2025

 

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--Maruti Suzuki Oct-Dec net profit INR 35.25 bln 
--Analysts saw Maruti Suzuki Oct-Dec net profit INR 36.17 bln 
--Maruti Suzuki Oct-Dec net profit INR 35.25 bln vs INR 31.30 bln year ago 
--Maruti Suzuki Oct-Dec revenue INR 384.92 bln vs INR 333.09 bln year ago 
--Maruti Suzuki Apr-Dec net profit INR 102.44 bln vs INR 93.32 bln year ago 
--Maruti Suzuki Apr-Dec revenue INR 1.112 tln vs INR 1.027 tln year ago 
--Maruti Suzuki shares off highs, up 0.2% now vs 1.5?rlier 
--Maruti Suzuki Oct-Dec operating EBIT INR 36.65 bln, up 16.1% on year 
--Maruti Suzuki Oct-Dec operating EBIT margin 10%, up 10 bps on year 
--Maruti Suzuki margin positively impacted by operating leverage 
--Maruti Suzuki margin positively impacted by higher non-operating income 
--Maruti Suzuki margin negatively impacted by higher sales promotion cost 
--Maruti Suzuki Apr-Dec operating EBIT INR 112.34 bln, up 19.2% on year 
--Maruti Suzuki Apr-Dec operating EBIT margin 10.6%, up 100 bps on year 

 

By Anand JC

 

MUMBAI – Maruti Suzuki India Ltd.'s December quarter earnings missed Street estimates by a small margin, but revenue grew in double digits on year due to a 13% growth in volumes. Despite the double-digit top line and bottom line growth, shares of the company pared earlier gains of over a percent to trade 1.1% lower on the National Stock Exchange, at INR 11,997 at 1404 IST.

 

The automobile-maker's revenue from operations for the December quarter was INR 384.92 billion, up 15.6% compared to the same period a year ago but lower than analysts' estimate of INR 387.88 billion. Maruti Suzuki's top line has grown at the quickest pace in the last three quarters on year, having grown 0.2% and 9.8% in the previous two quarters. Maruti Suzuki's net sales of INR 368.02 billion for the December quarter, 15.5% higher on-year, was its highest ever.

 

Its net profit for the reporting quarter was INR 35.25 billion, 12.6% higher on year, but missed analysts' forecast of INR 36.17 billion.

 

For Apr-Dec, Maruti Suzuki's revenue from operations was INR 1.112 trillion, 8.2% higher on-year while the net profit for the period increased to INR 102.44 billion, 9.8% higher on-year. The company recorded its highest-ever nine monthly sales volume, net sales and net profit in Apr-Dec. Maruti Suzuki sold 1.63 million units in these nine months, up 5% compared to the same period a year ago. 

 

 

The company sold 566,213 units in Oct-Dec, 13% higher on-year. In the final quarter of 2024, Maruti Suzuki's operating earnings before interest and taxes were INR 36.65 billion, 16.1% higher compared to a year ago. Contraction in depreciation and other expenses helped the company offset higher material costs during the December quarter. Sequentially, the operating EBIT remained flat. Maruti Suzuki's operating EBIT margin increased 10 basis points on year to 10%. 

 

For Apr-Dec, Maruti Suzuki's operating EBIT increased 19.2% on year to INR 112.34 billion. For the first nine months of the ongoing financial year, its operating EBIT margin was 10.6%, 100 bps higher on year.

 

Compared with a year ago, Maruti Suzuki's margin gained positively from a favourable operating leverage and higher non-operating income but was affected by higher sales promotion expenses, it said in its investor presentation. Sequentially, its margin was impacted by adverse foreign exchange variation and lower non-operating income.

 

The Vitara-maker's tax expenses for the December quarter was INR 10.77 billion, up 16.6% on year but 47% lower sequentially. Seen to be a one-off, the company's tax expenditure had increased in the September quarter to INR 20.31 billion owing to a change in laws.  

 

SALES PICTURE
Domestic sales, which contribute over 80% to the country's largest carmaker's overall sales, grew 8.7% on year in the final quarter of 2024. The company currently has a market share of around 40% in the domestic passenger vehicle market. Its exports posted an on-year growth of 38.2% for the December quarter as the company sold 99,220 units overseas, a record high. 

 

Maruti Suzuki's sales to other original equipment manufacturers increased 89% to 27,102 units. Its parent company Suzuki Motor Corp. has a global product-sharing agreement with Toyota. The latter's India arm Toyota Kirloskar Motor is currently selling four different rebadged Maruti Suzuki products in India's retail markets.

 

Mid-sized passenger vehicles and utility vehicles continued to dominate growth rates for Maruti Suzuki in the reporting quarter as smaller cars continued to lag. Compact and mini plus compact contribute 39% and 45%, respectively, to the company's domestic sales. Utility vehicles' share of total sales is just below 40%.

 

At Wednesday's board meeting where the company's December quarter earnings were approved, Maruti Suzuki re-appointed Hisahi Takeuchi as its Managing Director and Chief Executive Officer for another three years starting Apr. 1. Takeuchi has been serving as the MD and CEO of Maruti Suzuki since April 2022. 

 

The Haryana-based company's board also approved the scheme of amalgamation of Suzuki Motor Gujarat into itself, having granted it in-principle approval in October.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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