Maruti Suzuki Q3 Profit Jumps 33% on Strong Sales, Cost Cuts
Maruti Suzuki India Ltd. reported a robust 33% year-on-year surge in net profit for the October-December quarter, driven by higher sales, better capacity use, and cost-saving measures.
Key Takeaways
- Net Profit: ₹3,206.8 crore, up 33% YoY.
- Revenue: ₹33,308.9 crore, up 15% YoY.
- Vehicle Sales: 501,207 units, up 7.6% YoY.
- EBITDA Margin: Improved to 11.7% from 9.7%.
- Major Move: Board approved acquiring Suzuki Motor Gujarat, boosting capacity by 7.5 lakh units annually.
Financial Performance Snapshot
The country’s top carmaker posted a net profit of ₹3,206.8 crore for Q3 FY25, compared to ₹2,391.8 crore a year ago. Revenue from operations climbed 15% to ₹33,308.9 crore.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) saw a sharper 38% rise to ₹3,908 crore. The EBITDA margin expanded to 11.7%, a significant 200 basis points improvement from 9.7% in the same quarter last year.
Sales and Operational Highlights
Total vehicle sales for the quarter reached 501,207 units, marking a 7.6% increase. Domestic market sales accounted for 430,668 units, while exports stood at 70,539 units.
Strategic Equity Allotment and Gujarat Unit Acquisition
In a significant corporate move, the board approved issuing over 1.23 crore equity shares to parent Suzuki Motor Corporation on a preferential basis at ₹10,420.85 per share. This price represents a 9.8% discount to Wednesday’s closing price of ₹11,557.45 on the BSE.
More strategically, the board approved terminating the contract with Suzuki Motor Gujarat Pvt. Ltd. (SMG) and acquiring 100% of SMG from Suzuki Motor Corporation.
“The acquisition will be completed by the end of January 2025. The acquisition will be funded through internal accruals. The acquisition will help in increasing the production capacity of the company by 7.5 lakh units per annum,” Maruti Suzuki said in a statement. This move is a major step towards .
Market Reaction
Reflecting the strong results, Maruti Suzuki shares closed 4.1% higher at ₹11,557.45 on the BSE, outperforming the benchmark Sensex which ended 0.9% up at 71,752.11 points.
