Maruti Suzuki India, the largest automaker in India, recorded a fourfold increase in net profit to $2,061 billion in the second quarter compared to $475 billion in the same period previous year. The company reported its highest-ever quarterly net revenues for the quarter, coming in at 28,543 crores, up from 19,297 crores during the same period last year. 5.17 lakh vehicles were sold by the company in total during the quarter, a record for any quarter.
4.54 lakh units were sold domestically, while 63,195 units were exported by Maruti Suzuki India. According to the corporation, its margins were helped by substantially greater sales volume that enhanced capacity utilisation, positive foreign exchange variation, cost-cutting initiatives, and improved realisation.
“Maruti Suzuki Q2 performance was better-than-street estimates. Its new models – New Brezza, New Baleno, and Vitara have been gaining good traction. Pending customer orders stood at about 412k vehicles at the end of the quarter, of which 130k units for the newly launched models. The company has addressed white spaces in its portfolio through the launch of Brezza and Grand Vitara,” said Mansi Lall, Research Associate, Prabhudas Lilladher.
After then, Maruti Suzuki India’s stock increased by almost 6% after it released its strong July-September earnings.
Production was hindered by a shortage of electronic components by around 35,000 automobiles in the quarter. Due to the severe shortage of electronic components at the same time period last year, the company was only able to sell a total of 379,541 units, of which 320,133 were sold domestically and 59,408 were exported. The company also stated that at the end of this quarter, there were around 4.12 lakh unfulfilled client orders, of which 1.30 lakh were pre-orders for freshly released models.