Maruti Suzuki's consolidated profit for the first quarter fell by 11% to ₹3,352 crore, down from ₹3,758 crore in the same period last year, as rising input costs impacted profitability. The decline came despite a 36% increase in net sales to ₹49,959 crore, driven by strong demand across categories.
The company attributed the profit decline to increased input costs, exacerbated by the ongoing crisis in West Asia. Total expenses surged 41% to ₹49,988 crore, while unit sales reached a record 682,724 cars, marking a 29% increase from the previous year.
Sales growth was robust across segments, with domestic small car sales rising 34% and SUV sales up 45%. Exports also grew by 29%, contributing to a 2.3 percentage point increase in domestic market share to 41.2%.
Maruti Suzuki's board approved four compressed bio gas (CBG) projects with a budget of ₹561 crore, indicating a strategic move towards sustainable energy solutions. The company plans to expand CBG manufacturing based on the outcomes of these initial projects.
Shares of Maruti Suzuki saw a marginal increase to ₹14,239.40 on the BSE following the earnings announcement, which was made after market hours.
Background
Maruti Suzuki has been a dominant player in the Indian automotive market, consistently leading in sales and market share. However, the recent geopolitical tensions and fluctuating input costs have posed challenges to its profitability. The company's strategic investments in sustainable energy projects reflect its commitment to innovation and long-term growth.
Looking ahead, Maruti Suzuki's strategic expansion in sustainable energy projects and its ability to manage input costs will be crucial in maintaining profitability. Investors will be keenly watching the company's performance in the upcoming quarters as it navigates these challenges.
