Maruti Suzuki’s stock rises 6% after it reports 4x growth in Q2 net profit

• The automaker reported a four-fold rise in net profit to ₹2,061 crore in the second quarter.
• The shares of the automaker rose 6% after it announced its results.
• The company sold a total of 5.17 lakh vehicles during the quarter, the highest ever in any quarter.

India’s largest car maker Maruti Suzuki India reported a four fold rise in net profit to ₹2,061 crore in the second quarter as against ₹475 crore in the same quarter last year.

During the quarter, the company registered its highest-ever quarterly net sales of ₹28,543 crore as compared to ₹19,297 crore in the same quarter last year.

The company sold a total of 5.17 lakh vehicles during the quarter, the highest ever in any quarter.

Sales in the domestic market stood at 4.54 lakh units while exports were at 63,195 units.

The company said that relatively better sales volume leading to improved capacity utilization, favorable foreign exchange variation, cost reduction efforts and improved realization aided its margins.

Following this, shares of the automaker surged nearly 6% after the company reported strong earnings for July-September.

"Maruti Suzuki Q2 performance was better-than-street estimates. Its new models - New Brezza, New Baleno, and Vitara have been gaining good traction. Pending customer orders stood at about 412k vehicles at the end of the quarter, of which 130k units for the newly launched models. The company has addressed white spaces in its portfolio through the launch of Brezza and Grand Vitara," said Mansi Lall, Research Associate, Prabhudas Lilladher.

Shortage of electronic components impacted production by about 35,000 vehicles in the quarter.

The same period previous year was marked by acute shortage of electronic components and consequently the company could sell a total of 379,541 units comprising 320,133 units in domestic and 59,408 units in export markets.

Further the company informed that pending customer orders stood at about 4.12 lakh vehicles at the end of this quarter out of which about 1.30 lakh vehicle pre-bookings are for recently launched models.

(With inputs from IANS)

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