Maruti Suzuki's Q1 FY25 profit surges by 47% to ₹3,650cr
Maruti Suzuki, the nation's leading car manufacturer, has reported a substantial 47% year-on-year increase in its net profit for Q1 FY25. The company's net earnings rose to ₹3,650 crore, surpassing market expectations. A survey conducted by Moneycontrol involving eight brokerage estimates had predicted Maruti Suzuki's fiscal first quarter net profit to be around ₹3,235 crore.
Maruti Suzuki's Q1 FY25 revenue also surpasses estimates
Maruti Suzuki also reported a 10% rise in its April-June revenue, which climbed to ₹35,531 crore from ₹32,327 crore during the same period last year. This revenue growth exceeded the estimated figure of ₹34,566 crore as per the Moneycontrol poll. Following these results, Maruti Suzuki's shares experienced a surge of 3.67%, reaching ₹13,346.05 on the National Stock Exchange (NSE).
Operating margin expands due to decreased commodity prices
The company's operating margin for the quarter in review also saw an expansion of 390 basis points from a year ago to stand at 11.1%. This was primarily due to a decrease in commodity prices and input raw materials. "Cost reduction efforts, favorable operating leverage, and favorable foreign exchange movement also aided margins," Maruti Suzuki stated in an investor presentation.
Maruti Suzuki reports significant inventory gain in Q1 FY25
Maruti Suzuki reported an inventory gain of ₹895 crore during the quarter. This was a significant increase from approximately ₹100 crore a year ago as shown in the financial results. In terms of vehicle sales, Maruti Suzuki sold about 5.22 lakh vehicles during April-June, marking a year-on-year increase of 5%.
