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Informist, Thursday, Jul. 31, 2025

 

--Maruti Suzuki Apr-Jun net profit INR 37.12 bln 

--Analysts saw Maruti Suzuki Apr-Jun net profit at INR 30.20 bln 

--Maruti Suzuki Apr-Jun net profit INR 37.12 bln vs INR 36.50 bln year ago 

--Maruti Suzuki Apr-Jun revenue INR 384.14 bln vs INR 355.31 bln year ago 

--Maruti Suzuki: Domestic PV demand remained sluggish in Apr-Jun 

--Maruti Suzuki Apr-Jun operating EBIT INR 30.58 bln, dn 18.9% on year 

 

By Anand JC

 

NEW DELHI – Maruti Suzuki India Ltd.'s profit and revenue for the June quarter both exceeded analysts' expectations amid a sluggish demand environment for the domestic passenger vehicle industry. Maruti Suzuki's net profit for the June quarter was INR 37.1 billion, up just less than 2% compared to the year-ago quarter. Analysts had estimated its bottom line to fall by over 17% to INR 30.2 billion. 

 

Its revenue from operations for the reporting quarter increased by over 8% on year to INR 384.1 billion. This was also much better than the consensus estimate of a 3% on-year growth in its top line to INR 364.5 billion. Of this, earnings from the sale of products were INR 366.2 billion, 8% higher on year. Other operating revenues grew by the same quantum on year to INR 17.9 billion.

                           

The Swift maker's other income grew 87% on year to INR 18.2 billion. This was the strongest increase in its other income since the June quarter of 2023-2024 (Apr-Mar).

 

OPERATIONAL PROFILE

Maruti Suzuki's domestic passenger vehicle sales in the June quarter fell 4.5% on year to 430,889 units, but exports grew by a staggering 37% on year to 96,972 units. Overall, the company's sales volume grew by a paltry 1.1% to 527,861 units. 

 

Its operating earnings before interest and tax for the reporing quarter fell nearly 19% from the year-ago quarter to INR 30.6 billion. Operational EBIT margin for the quarter fell nearly 300 basis points to 8.3% for the period under review. 

 

Adverse commodity prices, adverse foreign exchange movement, higher sales promotion expenses, and costs related to its new Kharkhoda greenfield plant drove down its margin, Maruti Suzuki said in a presentation. However, cost reduction efforts and higher non-operating income offset the fall in margin, it said.

 

Maruti Suzuki's total expenses for the June quarter grew over 11% to INR 354 billion, driven by an increase in cost of materials consumed and employee benefits expense. Expenses incurred towards purchase of stock-in-trade during the quarter grew 6% to INR 145.4 billion, while input costs increased 11% to INR 134.4 billion. Its other expenses grew nearly 8% to INR 50 billion, while staff costs rose nearly 14% to INR 17.8 billion.

 

Maruti Suzuki's operating EBIT margin fell 40 bps to 8.3% during the June quarter on a sequential basis. This fall was accelerated by unfavourable operating leverage, adverse commodity prices, adverse foreign exchange movement, higher staff costs, and new plant expenses. Lower manufacturing, administrative, and advertisement expenses, coupled with higher non-operating income restricted the fall in margin on a quarterly basis, Maruti Suzuki said.

 

SALES OVERVIEW

The 4.5?ll in domestic despatches was accelerated by a 37?ll in sales of 'mini' cars by Maruti Suzuki. Despatches of compact and mini segment, which together form 46% of the overall cars sold by the Alto maker in India, contracted 11% on year to 196,792 units.

 

Utility vehicles, which have emerged as the favoured segment in the last decade or so in India, saw their despatches fall mildly on year to 161,868 units. This segment forms nearly 38% of its overall cars sold in India.

 

The company disclosed its June quarter earnings during the fag end of the market hours. Its shares closed mildly lower from the previous close on the National Stock Exchange, at INR 12,608 apiece.   End

 

Edited by Vandana Hingorani

 

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