Maruti Suzuki Q1’FY25 earnings: Net profit jumps 47% YoY as margin expands

Maruti Suzuki saw its net profit for the first quarter of the financial year 2025 jump 47% on a year-on-year basis as the company’s margins recorded a strong improvement on the back of factors such as higher volume with a favorable mix of utility vehicles, softening of raw material prices and improved realisations.

India's largest passenger car maker reported a standalone net profit of Rs 3,649.9 crore, against Rs 2,485.1 crore in the year-ago period. Revenue from operations rose 10% on year Rs 35,531.4 crore, driven by mid-single digit growth in vehicle dispatches.

Maruti Suzuki saw its volumes grow 4.8% on year during the quarter to 5.22 lakh vehicles. Domestic dispatches 3.8% to 4.51 lakh units on a high base, while exports increased by 11.6% to 70,560 units.

The growth in volumes was driven by utility vehicles as the domestic small-car market has been on a declining trend for some time. The company’s utility vehicle sales recorded 29% growth, while its mini and compact-sized car sales fell 12.4%. The share of utility vehicles in its total domestic volume during the period improved to 36.1%.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), or operating profit, zoomed 51% on year to Rs 4,502.3 crore while the EBITDA margin expanded to 12.7% from 9.2% in the year-ago period, as per our calculations.

Maruti Suzuki noted the softening of commodity prices, cost reduction efforts, and favorable operating leverage and foreign exchange movement helped to offset the impact of higher sales promotion and aided margin improvement during the quarter.

The company’s total expenses increased in the three months, but at a slower pace when compared to the top line. Total expenses rose 5.6% to Rs 31,817.4 crore.
Sequentially, the automaker’s net profit fell 5.9% as volumes were higher in the last quarter of the previous financial year. Vehicle dispatches declined 10.6% from the January-March quarter, which resulted in a 7% drop in revenue from operations.