Maruti Suzuki, India’s leading car manufacturer, has just announced a remarkable 80.3% surge in net profit for the July-September quarter. The company attributed this growth to multiple factors, including record-breaking sales, declining commodity prices, cost reduction efforts, and increased non-operating income. Previously, Maruti Suzuki had reported a net profit of Rs 2,061.5 crore in the same quarter of the previous fiscal year.
Notably, this quarter also witnessed Maruti Suzuki achieving its highest-ever sales volume, net sales, and net profit. The company recorded net sales of Rs 35,535.1 crore during the quarter, a substantial increase from Rs 28,543.50 crore in the corresponding period of the previous year. The impressive growth can be attributed to higher sales volume and an improved product mix.
Maruti Suzuki sold a total of 5,52,055 vehicles in the July-September period, surpassing the 5,17,395 units sold in the previous year’s second quarter. Out of these sales, 4,82,731 units were sold in the domestic market, while the remaining 69,324 cars were exported.
Moreover, the company’s EBITDA margin (earnings before interest, taxes, depreciation) for the quarter reached an impressive 12.9%. Compared to the previous year, EBITDA rose by almost 73%, with the margin expanding by 360 basis points.
Maruti Suzuki’s efforts to reduce costs also yielded positive results, as raw material costs as a percentage of sales decreased by 300 basis points, dropping from 76.5% to 73.5%.
Overall, Maruti Suzuki’s exceptional performance in the July-September quarter showcases its continued dominance in the Indian car market. With rising sales, efficient cost management, and favorable market conditions, the company has surpassed expectations and set a benchmark for others in the industry.
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