Maruti Suzuki Q4 net vrooms 47% as sales rise, input cost eases

Consolidated total income up 20%; Board recommends highest-ever dividend

Higher sales volume, favourable commodity prices, and higher non-operating income led Maruti Suzuki India (MSIL) to grow its consolidated net profit 47 per cent year-on-year to ₹3,952 crore in the fourth quarter that ended on March 31, compared to ₹2,687 crore in the same period last year.

Consolidated total income also rose by 20 per cent y-o-y to ₹39,654 crore (₹33,015 crore)March quarter in 2023.

The company sold 5,84,031 vehicles during the quarter – higher by 13.4 per cent compared to 5,14,927 units in the same period previous year.

On an annual basis, the company reported a consolidated net profit of ₹13,488 crore (₹8,263 crore). Total income grew by 21 per cent to ₹1,45,951 crore (₹1,20,674 crore).

The company sold 21,35,323 vehicles during the year — an 8.6 per cent increase over 19,66,164 units in FY23.

BRIGHT OUTLOOK

Regarding the growth outlook, RC Bhargava, Chairman of MSIL, told reporters that while the industry may be looking at a much lower growth partly because of a high base last year, Maruti will aim for double-digit growth this year.

“If post-election conditions align as anticipated, then Maruti will be in a position to achieve close to double-digit growth in the coming year. We should try and aim for that because people will be willing to buy new cars as inflation will be under control in FY202425 and that will lead to interest rate becoming low in the second half of the year,” he said.

On the expansion plan at the Kharkhoda (Sonipat) facility, MSIL expects the first line to start production before the end of this financial year and thereafter to be able to add one new production line every 12 months. Meanwhile, the company’s Board recommended the highest-ever dividend of ₹125 per share (face value of ₹5 per share) compared to ₹90 per share in FY23.

If post-election conditions align as anticipated, Maruti will be in a position to achieve close to double-digit growth in the coming year

RC BHARGAVA

Chairman of MSIL