Net profit of India's largest carmaker, Maruti Suzuki India Ltd jumped 145% year-on-year to ₹2,485 crore for the quarter ended June, riding on larger sales volume, improved realisation and cost reduction efforts.
Revenue from operations increased 22% year-on-year to ₹32,327 crore in the first quarter compared with ₹26,499 crore in the corresponding period a year ago.
The company sold a total of 498,030 vehicles during the quarter, higher by 6.4% compared to the same period the previous year. The sales in the domestic market stood at 434,812 units, up by 9.1% over that in Q1 FY23. The export sales were at 63,218 units in Q1 FY24 as compared to 69,437 units in the first quarter of FY23.
Shortage of electronic components in the April-June quarter resulted in over 28,000 vehicles not being produced, the carmaker says in a statement. Pending customer orders stood at about 355,000 vehicles at the end of the quarter.
Maruti Suzuki Board approves acquiring shares of SMG from SMC
The company's board of directors decided that for the purpose of efficiency in production and supply chain, it is best to bring all production-related activities under MSIL. Accordingly, the board approved the termination of the contract manufacturing agreement and exercising the option to acquire the shares of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation (SMC) subject to all regulatory compliances including minority shareholders' approval, the statement reads.
The mode of acquisition including consideration to be paid to SMC shall be decided in a subsequent board meeting, it says.
"With the growth of the Indian car market and export potential, Maruti Suzuki India Ltd (MSIL) would need to increase its production capacity to about 4 million cars per annum by 2030-31, almost double from current levels. This would happen over several locations, some of which are known and some being studied," India's biggest carmaker says.
Given the carbon neutrality requirements, several powertrain technologies like EVs, Hybrids, CNG, Ethanol etc. will co-exist for a reasonably long period of time. Managing this scale and complexity of production with multiple powertrains, under different managements, would pose several challenges, it adds.
"In terms of actual production, logistics, sales and the cost thereof, there will be no change as the cars earlier supplied by SMG as a contract manufacturer, will now continue to be supplied as before," the company says.
