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Maruti Suzuki Q3 results: PAT up 33% at Rs 3,207 cr amid high SUV sales

The company sold 501,207 units in the third quarter of this year, which was 7.6 per cent more than in the corresponding period of the last financial year

maruti suzuki

MSIL said that a strong SUV lineup has helped the company in achieving a market share of 21 per cent in the SUV segment in the April-December period of FY24

Deepak Patel New Delhi

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The consolidated net profit of Maruti Suzuki India Limited (MSIL) rose by 33.3 per cent year-on-year (Y-o-Y) to Rs 3,207 crore in the third quarter of this financial year (2023-24, or FY24), thanks to the softening of commodity prices, a rise in sales of sport utility vehicles (SUVs), and compressed natural gas (CNG) cars.

As commodity prices remained low, the material costs for India’s largest carmaker increased by just 9.7 per cent Y-o-Y to Rs 18,561 crore in the third quarter (Q3) of FY24.

The company sold 501,207 units in Q3FY24, a 7.6 per cent increase compared to the corresponding period of the last financial year (2022-23).

Dhruv Mudaraddi, research analyst at StoxBox, said, “MSIL’s Q3FY24 results reflect a mixed performance marked by notable growth in sales, driven primarily by a robust 8 per cent Y-o-Y volume increase, especially in the utility vehicle (UV) segment, which saw a remarkable surge of 60 per cent Y-o-Y.”

Maruti Suzuki Q3 FY24 results

However, entry-level models witnessed a decline of 48 per cent Y-o-Y during the same period.

When looked at in quarter-on-quarter (Q-o-Q) terms, MSIL’s net profit decreased by 15.3 per cent.

“While the company’s earnings before interest, tax, depreciation, and amortisation margin contracted sequentially owing to weak operational leverage and higher discounts, there are positive indicators for the future. Despite an 11 per cent Q-o-Q shrinkage in domestic volumes, sequential realisation increased by 3.2 per cent, propelled by exports and an improved product mix favouring SUVs. Additionally, exports grew 15.8 per cent Y-o-Y, contributing significantly to the growth in average selling price (up 11.2 per cent Y-o-Y) in Q3FY24,” Mudaraddi noted.

MSIL mentioned that a strong SUV line-up helped the company achieve a market share of 21 per cent in the SUV segment in the April-December period of FY24. Moreover, the company recorded the highest-ever quarterly sales of CNG vehicles, surpassing 127,000 units in Q3FY24.

Himanshu Singh, research analyst at Prabhudas Lilladher, said the cost reduction efforts and favourable foreign exchange variation benefited MSIL’s margin in Q3. Japan’s Suzuki Motor Corporation owns about 58 per cent in MSIL.

Mudaraddi said, “Looking ahead, a superior product mix with a higher share of UVs, normalised semiconductor availability leading to operating leverage, price hikes, and cost optimisation efforts are expected to support growth. The passenger vehicle segment is forecast to grow in low double digits, further bolstered by the depreciation of the Japanese yen against the rupee, presenting favourable conditions for MSIL’s future performance.”


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First Published: Jan 31 2024 | 5:14 PM IST

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