Profit Jumps Four-Fold to Rs 2,061.5 Cr; Highest Ever Quarterly Sales

The country’s largest car maker Maruti Suzuki India on Friday reported a huge 334 per cent year-on-year (YoY) growth in its standalone net profit for the quarter that ended September FY23 (Q2FY23). Healthy operating performance, sales volumes, and revenue along with higher other income supported the sales.


The raw material cost as a percentage of sales dipped 390 basis points on year, and other expenses fell by 190 bps, the company said.

Maruti Suzuki’s sales volume stood at Rs 28,543.5 crore for the September quarter as compared to Rs 19,297.8 crore in the corresponding quarter last fiscal.

The operational performance saw a stark improvement, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising more than three-fold to Rs 2,770 crore. Operating margin expanded 509 basis points to 9.25 per cent during the quarter under review.


Better sales volume due to pick-up in demand improved capacity utilisation and aided profitability. Favourable foreign exchange variation, cost reduction measures, and higher realisation were the other driving factors for operational performance.

These positive factors offset higher advertising costs and power and fuel expenses to an extent.

Reacting to the earnings, shares of the company rallied around 4 per cent. At 2:48 pm, the stock was trading 3.64 per cent higher at Rs 9,375 on the BSE.

Maruti Suzuki sold a total of 5.17 lakh vehicles during the quarter ended September FY23, the highest ever in any quarter, increasing 36 per cent YoY, which comprises domestic sales of 4.54 lakh units and exports at 63,195 units.

Shortage of electronic components impacted production by about 35,000 vehicles during the quarter, the company said.

The company further said pending customer orders stood at about 4.12 lakh vehicles at the end of the September FY23 quarter, out of which about 1.3 lakh vehicle pre-bookings were for recently launched models.

The operating profit for Q2FY23 at Rs 2,046.3 crore increased nearly 21-fold compared to the same period last year, largely on a low base.

The operating profit in the year-ago period had dipped sharply owing to steep commodity price increases and electronic component supply constraints and hence YoY results are not strictly comparable, Maruti said.

The operating profit margin expanded sharply by 670 bps year-on-year to 7.2 per cent during the quarter.

“Relatively better sales volume leading to improved capacity utilisation, favourable foreign exchange variation, cost reduction efforts, and improved realisation boosted margin performance, though impacted by higher advertisement cost, and higher power & fuel expenses,” the company said.

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