Maruti Suzuki India, the country’s leading passenger car manufacturer, has unveiled impressive financial results for the second quarter of 2023. The company reported a standalone net profit of ₹3,716.5 crore during Q2, marking a remarkable 80.28% increase compared to the same quarter last year, when it stood at ₹2,061.5 crore.The substantial surge in net profit is attributed to several key factors, as stated in the official stock exchange filing by Maruti Suzuki. These include increased non-operating income, reduced commodity prices, improved net sales, and effective cost-cutting initiatives.In addition to the impressive profit figures, Maruti Suzuki’s standalone revenue for Q2FY24 displayed substantial growth, rising by 23.8% to reach ₹37,062.1 crore, compared to ₹29,930.8 crore in the previous year.The company’s robust performance is further underscored by the sales data. During the quarter, Maruti Suzuki successfully sold a total of 552,055 vehicles, out of which 482,731 were sold domestically, and 69,324 were exported. This signifies a substantial improvement over the same period last year when total sales reached 517,395 units, comprising 454,200 domestic sales and 63,195 exports.Notably, Maruti Suzuki’s operational performance has significantly improved, with earnings before interest, taxes, depreciation, and amortization (EBITDA) increasing by 72.8% to ₹4,784 crore, up from ₹2,768 crore. Moreover, the EBITDA margin expanded by 360 basis points (bps) to 12.9% from 9.3% year-on-year.Maruti Suzuki attributes this margin improvement to a combination of factors, including enhanced realization, falling commodity prices, diligent cost-reduction efforts, increased sales volume, higher capacity utilization, and elevated non-operating income.The company proudly stated that the first half of the fiscal year, H1FY2023–2024, set records for sales volume, net sales, and net profit. During this period, Maruti Suzuki reported a 6.6% increase in total unit sales, reaching 1,050,085 units, which included 132,542 units exported and 917,543 units sold domestically.Following the release of these impressive Q2 earnings, Maruti Suzuki’s share price surged by nearly 3%, reaching a new all-time high. Analysts expect the upward momentum to continue, with a potential target of ₹11,000 in the short term and strong support at ₹10,500, according to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.Maruti Suzuki’s outstanding financial results in the second quarter underscore its strong position in the Indian automobile market and its ability to adapt to changing market conditions and customer demands.
