Maruti Suzuki Q4 net profit zooms 43% to ₹2,624 crore beating expectations, to add capacity of 1 million vehicles

• The carmaker more than doubled its net profit for FY23 to ₹8,049 crore from ₹3,766 crore, thanks to higher sales volume and improved realisations.
  
• Maruti Suzuki said gains in sales volumes, improved realisations and cost reduction efforts aided its margin growth during Q4, which increased 130 basis points YoY to 10.4%.
  
• The utility vehicles segment continued to shine, with volumes increasing nearly 26% in FY23 and 38% YoY in Q4.
  

India’s leading car maker Maruti Suzuki on Wednesday reported a 43% year-on-year rise in fourth-quarter standalone net profit to ₹2,624 crore, beating analysts’ expectations. For FY23, net profit more than doubled to ₹8,049 crore from ₹3,766 crore, thanks to higher sales volume and improved realisations.

Maruti Suzuki’s FY23 revenue grew by 33% to ₹1.18 lakh crore, while its Q4 revenue grew by 19.9% on year to ₹32,048 crore.

Gains in sales volume, improved realisations and cost reduction efforts aided Maruti Suzuki’s margins during the quarter, the company said.

The car manufacturer’s operating margins rose 130 basis points YoY to 10.4% during the March quarter, its highest in the last nine quarters.

“Despite the shortage of electronic components, the company recorded its highest-ever annual sales volume. The annual turnover of the company surpassed ₹1 lakh crore mark,” said Maruti Suzuki in an exchange filing.

The company also announced a capacity addition of 1 million units, taking its total capacity to 2.3 million units per year. The addition would be financed via internal accruals, the company said in an exchange filing.

Volume surge despite semiconductor shortage

The increase in sales volume is despite the semiconductor shortage impacting its total production during the year by 1.7 lakh units. Aiding this growth in sales were the company’s new product launches.

Maruti Suzuki’s total sales stood at 19.66 lakh units in FY23, up 19% from FY22. On a quarterly basis, it recorded sales of 5.15 lakh units, rising 5.3% from a year ago and 10.5% on a sequential basis.

“The new models and product refreshers introduced during the year especially in the utility vehicles segment received good market response,” the company added.

Maruti Suzuki’s Q4 and FY23 in numbers:


Source: Company reports

Compact cars continue to shrink

Maruti Suzuki’s compact car segment – which accounts for over half of the company’s total domestic sales – continued to shrink in Q4, registering a decline of 2.6%. On an annual basis, though, the compact car segment’s sales rose 22.4%.

The mid-size segment, which reported strong growth in Q3, witnessed a major fall of over 61% in Q4, leading to the segment reporting a net decline of 14% in FY23.

However, the utility vehicles segment continued to witness strong demand, growing on both quarterly as well as annual basis. This segment consists of cars like the Brezza and S-Cross, among others.

Maruti Suzuki’s domestic sales across segments:


Source: Company reports

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