Maruti Suzuki’s Q3 net profit zooms 133% to ₹2,351 crore on lower input costs
- Maruti Suzuki more than doubled its standalone net profit to ₹2,351 crore in Q3, from ₹1,011 crore in the same period last year, while its revenue rose 25.5% during Q3 to ₹27,849 crore.
- The profit beat was on the back lower raw material costs during the quarter.
- Its customers continued to shun mini cars like the Alto, while the utility vehicles segment – which includes cars like the Brezza, S-Cross among others – grew 23% YoY in Q3.
For Q3 FY23, Maruti Suzuki reported a 22.7% sequential decline in its raw material costs.
Softer commodity prices, improved realisations and cost reduction efforts aided Maruti Suzuki’s margins during the quarter, the company said.
The car manufacturer’s operating margins continued to improve, rising 304 basis points YoY to 9.75% during the December quarter, its highest in the last eight quarters.
Maruti Suzuki’s total sales stood at 4.65 lakh units, up 8.2% from Q3 FY22 but down 10% on a sequential basis.
Demand softens in Q3, electronic component shortage worsens
Maruti Suzuki also reported a softening in demand during Q3, with its order book declining to 3.63 lakh units from 4.12 lakh in Q2. Orders for new vehicles also fell to 1.19 lakh units in Q3, from 1.3 lakh units in Q2.
It also reported that the shortage of electronic components worsened during the quarter – affecting production of 46,000 vehicles, up from 35,000 vehicles in Q3.
Maruti Suzuki’s Q3 in numbers:
|Particulars||Q3 FY23||Q2 FY23||Q3 FY22|
|Revenue||₹27,849 crore||₹28,544 crore||₹22,188 crore|
|Net profit||₹2,351 crore||₹2,062 crore||₹1,011 crore|
|Total sales (units)||4,65,911||5,17,395||4,30,668|
Source: Company reports
Entry-level car sales fall as customers shift to more premium cars
Customers continued to shun Maruti Suzuki’s mini cars like Alto – the mini segment reported a decline on both YoY as well as sequential basis, alongside the vans and light commercial vehicle segments.
On the other hand, the company reported a strong uptake in the mid-size and utility vehicle segments, which grew on both YoY as well as sequential basis.
The utility vehicle segment, which includes cars like the Brezza, S-Cross, XL6 and Grand Vitara, now accounts for nearly 24% of Maruti Suzuki’s domestic sales in Q3 FY23, up from 21.5% in Q3 FY22.
Maruti Suzuki’s domestic sales across segments:
|Segment||Q3 FY23||Q3 FY22||YoY||Q2 FY23||QoQ|
|Light commercial vehicles||7,098||10,103||-30%||8,692||-18%|
|Sales to other OEMs||12,089||13,837||-13%||20,112||-40%|
|Total domestic sales||4,03,929||3,65,673||10%||4,54,200||-11%|
Source: Company reports
$MARUTI.NSE Strong earnings expected from Maruti Suzuki in Q3. It may continue to have good results in Q4 as well due to strengthening of its SUV line. Technical Analysis indicates that Maruti took support from 8000-8150 levels and gave a strong weekly closing of 8394. Since then, the stock has been in uptrend indicating bullishness. Earlier, Maruti had taken multiple supports from 200 EMA on weekly time-frame and is currrently trading above it. The overall structure looks good for short- midterm targets of 8830-9000.— (@AnweshaPanda) January 24, 2023
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