India’s leading automaker Maruti Suzuki India Ltd clocked a standalone profit of Rs 1,012.8 crore for the quarter ended June 2022, up 130 per cent from the year-ago period on a low base, Reuters reported on Wednesday.
According to the report, the company posted a quarterly profit below estimates, as rising raw material costs ate into margins despite more sales at higher prices.
Maruti Suzuki sold 467,931 units of vehicles during the quarter ended on June 30, 2022, as against 353,616 units sold last year. This led to a standalone revenue of Rs 26,499.8 crore, up 49.1 per cent year-on-year (YoY), but down 0.8 per cent quarter-on-quarter (QoQ).
Maruti, is majority-owned by Japan’s Suzuki Motor Corp, said in its BSE filing, “The shortage of electronic components in this quarter resulted in about 51,000 vehicles not being produced. Pending customer orders stood at about 2.8 lakh vehicles at the end of the quarter and the company is making efforts to serve these orders fast.” Analysts had expected a profit of Rs 1,595 crore, according to Refinitiv data.
Maruti, which sells every second car in India, has raised prices six times from January 2021 to June 2022, while cutting back on discounts as demand rebounded from pandemic lows.
The company's average selling price per car during the quarter was Rs 5,40,385 versus Rs 4,75,057 a year ago, helped by higher sales of compact cars and sport utility vehicles (SUVs).
Carmakers around the world are hiking prices to counter higher input and freight costs that are expected to take a bite out of their earnings.
Maruti's earnings before interest, taxes, depreciation, and amortization margin (Ebitda), a key measure of profitability, stood at 7.2 per cent. Analysts had expected an Ebitda margin of 8.8 per cent, the Refinitiv data stated.
Shares of Maruti rose 1.62 per cent to Rs 8,660.05 apiece on the BSE on Wednesday.
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