Suzuki Motor Q2 operating profit jumps two-fold on improved sales

Japanese auto major Suzuki Motor Corporation reported a two-fold year-on-year increase in operating profit at 89.8 billion yen (around Rs 5,000 crore) in the second quarter ended September 30, 2022

Japanese auto major Suzuki Motor Corporation on Tuesday reported a two-fold year-on-year increase in operating profit at 89.8 billion yen (around Rs 5,000 crore) in the second quarter ended September 30, 2022.

Net sales in the period under review stood at 1,154.1 billion yen (around Rs 64,000 crore), an increase of 39.3 per cent over 828.2 billion yen in the same period last year.

The company attributed the rise in operating profit to sales volume growth across markets, including India, which offset the impact of higher raw material prices.

Suzuki said its automobile sales across markets for the April-September period stood at 14.63 lakh units as compared to 12.55 lakh units in the same period last year.

On the business outlook for the rest of the year, the automaker noted: "While there is no change in our perception that the risk of global recession is increasing, we have revised the forecast upward to reflect the progress of the first half of the fiscal year and the review of unit sales and the weak yen."

The company, which operates in India through its subsidiary Maruti Suzuki India (MSI), now expects net sales of the full year to touch 4,500 billion yen, up 600 billion yen from the previous forecast.

Similarly, it expects operating profit to touch 290 billion yen for the full year.

Earlier, MSI had reported an over four-fold increase in consolidated net profit to Rs 2,112.5 crore in the second quarter that ended on September 30, 2022, riding on record sales.

Total revenue from operations was at Rs 29,942.5 crore as against Rs 20,550.9 crore in the year-ago period.