 "Maruti Suzuki Q3 results: Net profit jumps 16.2% to Rs 3,726 crore")
The consolidated net profit of Maruti Suzuki India (MSIL) rose 16.2 per cent year-on-year (Y-o-Y) to Rs 3,726.9 crore in the third quarter of the financial year 2024-25 (Q3FY25), driven by strong demand for SUVs and CNG-run cars, festival sales, and robust growth in rural areas.
After subdued growth during the first two quarters, the company saw its domestic sales jump by 8.75 per cent Y-o-Y in the third quarter to 466,993 units.
“In the first nine months of the year, on a retail level, we have recorded about 3.5 per cent Y-o-Y growth. We expect this to continue into the fourth quarter,” Rahul Bharti, Executive Director, Corporate Affairs, MSIL said during a conference call with analysts.
When asked about the expected sales in 2025-26, he said, “It is slightly premature to talk about the next year because the whole industry will meet at February-end to come out with a consensus growth estimate. It is known that the demand scenario is generally subdued and weak. It is a reality that we have to live with for some time.”
MSIL’s total income soared 15.4 per cent Y-o-Y to Rs 39,822 crore in the third quarter. Meanwhile, its total expenses increased 15.6 per cent Y-o-Y to Rs 35,163.1 crore.
“The rural areas have been doing better than urban areas. In Q3, the volume sales (retail) growth in rural areas was about 15 per cent. Urban growth was at 2.5 per cent. This is leading to an aggregate of about 8.7 per cent of growth in the third quarter,” Bharti stated.
More than the domestic sales, the company saw a much higher jump in exports, which increased by 38.2 per cent Y-o-Y to 99,220 units in the third quarter of 2024-25.
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“Exports have been a very happy story for us. We have consistently been putting efforts and it is showing results now. The growth in exports is distributed across regions such as Africa, Latin America and the Middle East. This growth is due to strong dealership network, intensive efforts to reach out to customers, better finance options, and more model launches,” Bharti noted.
When asked about his budget expectations, he just said that if there is any general improvement in the consumption pattern of people across the country, it would be good for MSIL.
MSIL said the board has extended the term of its current Managing Director and Chief Executive Officer Hisashi Takeuchi till March 31, 2028. Takeuchi joined MSIL in April 2021 as Joint Managing Director (Commercial) and has been serving as MD & CEO since April 2022. Japanese company Suzuki Motor Corporation holds 58.28 per cent shares in MSIL.
MSIL, which unveiled its first electric car e-Vitara at Bharat Mobility Global Expo here on January 17, was targeting to become the largest electric car producer in India within a span of one year, Takeuchi had told reporters.
Bharti on Wednesday told analysts that the company has done a “careful analysis” of the problems that the customers were facing due to electric cars that are already present in the market. MSIL learnt that reliability is one very big factor for customers. “Suzuki name is synonymous with reliability. We have taken a lot of pains to ensure that there are no problems while driving and there is strong service support,” he added.
e-Vitara will first be exported to a few key markets before being put on sale in India. About 99,165 electric cars were sold in India in 2024, recording 20 per cent annual growth, according to FADA. Tata Motors is the leader in the electric car market with about 62 per cent share.