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Informist, Friday, Apr. 25, 2025

 

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--Maruti Suzuki Jan-Mar net profit INR 37.11 bln vs INR 38.78 bln year ago 
--Analysts saw Maruti Suzuki Jan-Mar net profit INR 38.58 bln 
--Maruti Suzuki Jan-Mar revenue INR 406.74 bln vs INR 382.35 bln year ago 
--Maruti Suzuki to pay INR 135 per share final dividend 
--Maruti Suzuki FY25 net profit INR 139.55 vs INR 132.09 bln year ago 
--Maruti Suzuki FY25 revenue INR 1.52 tln vs INR 1.41 tln year ago 
--Maruti Suzuki Jan-Mar operating EBIT INR 33.92 bln, dn 14.2% on year 
--Maruti Suzuki Jan-Mar operating EBIT margin 8.7%, down 210 bps on year 
--Maruti Suzuki FY25 operating EBIT INR 146.26 bln, up 9.3% on year 
--Maruti Suzuki FY25 operating EBIT margin 10.1%, up 20 bps on year 
--Maruti Suzuki: Jan-Mar margin down on Kharkhoda greenfield plant expenses 
--Maruti Suzuki: Jan-Mar margin down on higher sales promotion, advt expenses 
--Maruti Suzuki: Jan-Mar margin down on higher mfg overheads 

 

By Anand JC

 

NEW DELHI – Maruti Suzuki India Ltd.'s top line and bottom line for the March quarter both missed analysts' estimates owing to an uptick in total expenses. Moderation in demand for automobiles in India weighed on the company's earnings as growth in key metrics for the March quarter fell to multi-year lows.

The country's largest passenger vehicle manufacturer reported a net profit of INR 37.1 billion for the March quarter, lower than analysts' estimate of INR 38.6 billion. On a year-on-year basis, the company's net profit contracted 4.3%, but it grew 5.3% sequentially. Maruti Suzuki's net profit fell for the first time in a March quarter since the financial year 2020-21 (Apr-Mar), when it had declined 10% year on year. 

 

Maruti Suzuki's revenue for the reporting quarter grew 6% on year to INR 406.7 billion, lower than the consensus estimate of INR 410.8 billion. This is the weakest year-on-year growth in the company's revenue from operations for the March quarter since FY20, when it had contracted 15%. A slump in demand for cars, reflected by the 2.8% growth in domestic sales for the March quarter, led to a slowdown in revenue growth.

 

The company's other operating revenues for the latest quarter amounted to INR 18.3 billion, up 16% on year. The bottom line for FY25 was INR 139.6 billion, 6% higher from the previous year, while the revenue was INR 1.519 trillion, 8% higher.

 

EXPENSES BITE

Maruti Suzuki's total expenses for the March quarter were INR 373.3 billion, up 9% on year and 7% sequentially. Expenses rose mainly because of double-digit on-year increase in cost of materials consumed, other expenses, and employee benefits.

 

Cost of materials consumed rose 20% on year to INR 144.7 billion as the industry grappled with increasing compliance costs and raw material prices. The expenses on employee benefits for the March quarter were INR 15.7 billion, up 15% on year. Maruti Suzuki's other expenses for the reporting quarter also increased 15% on year to INR 56.7 billion. Analysts had expected the company to report higher other expenses on account of the Bharat Mobility event.

 

Maruti Suzuki's operating earnings before interest and taxes fell 14% on year to INR 33.9 billion, the company said in its investor presentation. Expenses related to the Kharkhoda greenfield plant, higher sales promotion and advertisement expenses, and higher manufacturing overheads and administrative expenses had a negative impact on the company's margin for the reporting quarter, the company said. 

 

As per Informist calculations, Maruti Suzuki's profit margin for the March quarter was 9.12%, down from 10.14% in the base quarter. The company's operating EBIT margin for the March quarter was 8.7%, down 210 basis points on year. For FY25, the company's operating EBIT was INR 146.3 bln, up 9.3% on year. Its EBIT margin for the year increased 20 bps to 10.1%.

 

Maruti Suzuki disclosed its March quarter earnings during market hours. The company's shares sank to the day's low on margin disappointment, ending Friday's session at INR 11,698 apiece on the National Stock Exchange, down 1.7%. The board of Maruti Suzuki approved a dividend payout of INR 135 per share, compared with INR 125 in FY24.

 

SALES PROFILE
In the March quarter, Maruti Suzuki sold a record-high 604,635 units, 3.5% higher than in the corresponding period last year. In India, the company sold 519,546 units to dealers, up 2.8% on year. Exports grew at a robust 8.1% on year to 85,089 units.

 

A similar trend was seen in FY25, too. The company sold 2.2 million units, up 4.6% from FY24, but domestic sales grew only 2.7% on year, while exports grew 18.0%. Apart from utility vehicles, sales of all categories declined. Despatches of mini cars fell 12%, compact cars fell 7%, and mid-size cars fell 19%. Despatches of utility vehicles grew 12%, highlighting Indian consumers' growing preference for bigger cars. Mini and compact cars, still a consumer favourite, together contributed 47% to Maruti Suzuki's overall domestic sales in FY25, but utility vehicles accounted for 38% of the Brezza-maker's overall India sales.  End

 

Edited by Rajeev Pai

 

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