Maruti Suzuki India Q4 profit jumps 43% to ₹2,624 cr; net sales up 21%

India's largest passenger vehicle maker Maruti Suzuki India has reported a net profit of ₹2,623.6 crore for the January-March quarter, recording a growth of 42.7% as compared to the same period the previous year. In its 40th anniversary year, despite the shortage of electronic components, Maruti said it recorded its highest-ever annual sales volume, while the annual turnover surpassed ₹1 lakh crore mark.

Maruti Suzuki India, in a stock exchange filing, said its operating profit for the quarter stood at ₹2,611.1 crore, a growth of 46.7% over that of Q4 FY22 on the account of higher sales volume, improved realisation from the market, and favourable forex movement.

During the quarter, the company registered net sales of ₹30,821.8 crore, an increase of 20.8% as compared to the same period the previous year. In the quarter under review, Maruti's sales in the domestic market stood at 450,208 units, up by 7.1% over that in Q4 FY22. The sales in the export market were at 64,719 units as compared to 68,454 units in Q4FY22.

The company sold a total of 5,14,927 vehicles during the Quarter, higher by 5.3% compared to the same period the previous year. The Board of Directors of the company has recommended the highest-ever dividend of ₹90 per share (face value of ₹5 per share) compared to ₹60 per share in FY 2021-22.

For the full year ending March 31, 2023, Maruti Suzuki India recorded a net profit of ₹8,049.2 crore from ₹3,766.3 crore in FY22. The company recorded an operating profit of ₹8,184.4 crore in FY23 against ₹2,914.7 crore in FY22. The company was able to better its operating profit on account of higher sales volume, improved realization from the market, and favourable forex movement.

Maruti's net sales for the whole fiscal year stood at ₹1,12,500.8 crore as compared with ₹83,798.1 crore in FY2021-22. The company sold a total of 1,966,164 vehicles during the year despite missing production of about 1,70,000 units due to a shortage of electronic components. This translated to a growth of 19% over FY2021-22 sales volume of 1,652,653 vehicles. Sales volume in the year comprised 1,706,831 units in the domestic market and the highest-ever exports of 259,333 units.

Maruti said in light of the estimated market demand including exports, the board in principle approved the creation of an additional capacity of up to one million vehicles per year.

Axis Securities has maintained a positive outlook on the auto sector for FY24, expecting a more challenging landscape ahead as pent-up demand of FY23 over the low base of FY22 subsides across segments.