News

Published: October 28, 2023
Updated: October 28, 2023

Maruti Suzuki Achieves Record-Breaking Q2 Performance

In a spectacular performance for the second quarter of FY24, Maruti Suzuki India (MSIL) has reached new heights, breaking records in various aspects. The company's strategic efforts have led to a substantial 80.3% YoY jump in net profit to a staggering Rs 3,716.5 crore. This exceptional growth can be attributed to several key factors, including higher net sales, softening of commodity prices, cost-saving initiatives, and increased non-operating income.

Record Quarterly Sales:

Maruti Suzuki's Q2FY24 report reveals an extraordinary achievement. The company witnessed the highest-ever quarterly sales volume, net sales, and net profit. The stock of this automotive giant surged to an all-time high of Rs 10,846.10, a 4% increase on the BSE, surpassing its previous high of Rs 10,812.40 achieved on October 16.

Driving the Profit Surge:

The remarkable jump in net profit can be traced back to several strategic decisions made by Maruti Suzuki. They capitalised on higher net sales, leveraged the softening of commodity prices, and implemented cost-reduction efforts that significantly impacted their financial performance. Additionally, the company saw a boost in non-operating income.

Financial Details:

During the quarter, Maruti Suzuki registered net sales of Rs 35,535.1 crore, a considerable increase compared to Rs 28,543.5 crore in the same period of the previous year. This remarkable growth can be attributed to higher sales volume and an optimized product mix. Notably, the company's operating earnings before interest and tax (EBIT) showed an impressive improvement of 400 basis points, reaching 11.2%. This uptick was primarily driven by improved realization, reduced commodity prices, cost-saving strategies, higher sales volume leading to improved capacity utilization, and increased non-operating income.

Impressive Sales Figures:

Maruti Suzuki reported the sale of 552,055 vehicles in Q2FY24, a notable 6.7% increase compared to the 517,395 vehicles sold in Q2FY23. This solidifies the company's position in the automotive market.

Domestic Market Dominance:

In the domestic market, Maruti Suzuki's passenger vehicle wholesales grew by approximately 8%, surpassing the industry's growth rate of 5%. This achievement underscores the company's successful strategies in catering to the needs of the local market.

Leadership in the SUV Segment:

One of the most remarkable achievements for Maruti Suzuki is its leadership position in the SUV segment. This success is attributed to a robust product lineup designed to meet the demands of the growing SUV market.

Maruti Suzuki's exceptional performance in Q2FY24 is a testament to its robust strategies, dedication to quality, and market-leading product offerings. The company's record-breaking net profit and sales volume demonstrate its commitment to delivering value to its shareholders and customers alike. As they continue to innovate and expand their portfolio, Maruti Suzuki is poised for a bright and prosperous future in the automotive industry.