Maruti Suzuki reports 80.3% YoY jump in net profit during Q2FY24

The country's largest car maker, Maruti Suzuki reported its highest-ever net profit of Rs 3716.5 crore during Q2 FY24, which is an 80.3% jump over the Rs 2061.5 crore registered in Q2 FY23. The company attributed the development to higher net sales, a softening of commodity prices, cost reduction efforts, and higher non-operating income. 

During the quarter, the company registered net sales of Rs 35535.1 crore, which stands to be 24.5% growth against Rs 28543.5 crore in the same period the previous year, owing to higher sales volume and product mix. 

As per the press statement issued by Maruti Suzuki, during Q2FY24, 552,055 vehicles were sold by the company. Sales in the domestic market were 482,731 units, while 69,324 cars were exported. The same period in the previous year had seen total sales of 517,395 units, comprising 454,200 units in domestic and 63,195 units in export markets.   

Reviewing the Q2 FY-24 earnings, R C Bhargava, chairman of Maruti Suzuki said,"We are meeting at a happier time now, most of the issues, which had come in the way of the company performing to its potential in the past, were absent during this quarter and largely during this half. Now we feel we are in a more normal circumstances, the economy is in a good position despite what is happening globally and things are moving on as they should." 

The quarterly results of Maruti Suzuki are the best that the company has ever had in its history so far, in terms of volumes, turnover, margins, or profits, said Bhargava. The important highlight of this period is the fact that in this half year have crossed the 1 million mark, he added. 

"We have been waiting for this to happen earlier, but various factors came in the way. The semiconductor crisis was mostly responsible. We had hoped to get to 2 million is much earlier. Now we are pretty hopeful of crossing the 2 million landmark this year," Bhargava added. 

With the semiconductor shortage easing, Maruti Suzuki has been able to reduce the waiting list. The pending bookings is likely to reduce from the previous peak of 4 lakh cars to 2.15 lakh units by the end of October, informed Bhargava.

Due to increased production and sales of CNG vehicles, penetration of CNG vehicles as part of total sales has gone up 4 percent from 20 percent to 24 percent, or 400 basis points in one year, he added.