Maruti Suzuki India announced its financial results for the first quarter of FY23 on 27th July 2022. It declared a profit after tax (PAT) of Rs. 1,036.2 crores in the quarter under review. This is a massive increase of 118.15% YoY (year on year) from the Rs. 475 crores the company reported in Q1 FY22. Maruti Suzuki’s management however acknowledged that a YoY comparison in profits would not be on a like-to-like basis as the performance of the company in Q1 FY22 was severely affected by Covid-related shutdowns and disruptions.
It is noteworthy that the figure for this quarter is, nonetheless, a decline of 44.76% QoQ (quarter on quarter) from the Rs. 1,875.8 crores reported in Q4 FY22. A shortage of electronic components in this quarter resulted in about 51,000 vehicles not being produced at all. Pending customer orders stood at about 280,000 vehicles at the end of the quarter. There were also increased advertisement expenses, adverse commodity prices, and a lower non-operating income.
The operating EBIT for Maruti Suzuki stood at Rs. 1,260.7 crore in Q1 FY23, a 29.16% QoQ decline from Rs. 1,779.6 crore in Q4 FY22. The adverse impact was due to an increase in prices of commodities. Because of this, the auto-manufacturer was forced to increase prices of vehicles to partially offset the impact. The quarterly decline was despite a massive YoY growth from just Rs. 77.9 crore in Q1 FY22.
The revenue from operations of the Delhi-based automobile company stood at Rs. 26,511.7 crores in Q1 FY23, up by 49.14% YoY from the Rs. 17,776.4 crores reported in Q1 FY22. This was due to a better sales volume, improved capacity utilisation, cost reduction efforts, and the increase in the selling price.
During the first quarter of this financial year, the company sold a total of 467,931 vehicles. Sales in the domestic market in Q1 FY23 stood at 3,98,494 units, an increase of 29.34% YoY, from the 308,095 units reported in Q1 FY22. Notably, the exports were recorded at 69,437 units, the highest ever in any quarter, growing 52.55% YoY from 45,519 units in the same quarter of the previous year.
The earnings per share stood at Rs. 34.3, up by 118.19% YoY from Rs. 15.72 in the same quarter of the previous year. Around 2:39 pm, minutes after the result was declared during market hours, the Maruti Suzuki share was trading in the green at Rs. 8,581, up 0.65%, reacting positively to the result announcement.
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Research Analyst: Bavadharini KS