Maruti Suzuki Q2 Results: Net Profit Soars 80%, Firm Reports Record High Quarterly Sales

This increase in profit was attributed to a surge in net sales, softer commodity prices, cost reduction efforts, and increased non-operating income.

The automaker stated that it controlled 23.3 per cent of the market share in the SUV segment now. 

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Passenger carmaker Maruti Suzuki posted a massive increase in its net profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Friday. The automaker logged a net profit of Rs 3,716.5 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 2,061.5 crore in the second quarter of the previous fiscal year (FY23). This marked an increase of 80 per cent in the company’s net profit on a YoY basis.

This increase in profit was attributed to a surge in net sales, softer commodity prices, cost reduction efforts, and increased non-operating income. However, these factors were partly offset by a higher depreciation and increased sales promotion expenses, the automaker said in an exchange filing. 

The firm’s other income component stood at Rs 843.6 crore during the reported quarter, against Rs 612.5 crore logged during the same period a year earlier. The automaker’s revenue increased nearly 24 per cent to Rs 37,062.1 crore in Q2FY24, up from Rs 29,930.8 core reported in Q2FY23. The raw material costs as a percentage of sales improved and fell 300 basis points to 73.5 per cent in the reported quarter, against 76.5 per cent in the same period a year earlier. 

Volume Growth

It credited the boost in volume to the firm’s utility vehicle segment. The company recorded the highest-ever volumes in the reporting quarter, along with record net sales and profit in the quarter. The company’s sales volume increased by 6.7 per cent on a YoY basis as the firm recorded sales of 552,055 units in the quarter ended September in the current fiscal year, against 517,395 units sold in the corresponding quarter in the previous fiscal year. 

In volume, the passenger vehicle segment witnessed robust growth. Vehicle wholesales increased by 8 per cent during the quarter compared to the industry average growth of 5 per cent. Additionally, the automaker stated that it controlled 23.3 per cent of the market share in the SUV segment now.