Maruti Suzuki's Q2 net profit rises 4 times on easing supply chain issues | The Financial Express

Maruti Suzuki’s Q2 net profit rises 4 times on easing supply chain issues

Maruti Suzuki’s Q2 net profit for FY23 rose by 4 times to Rs 2061.50 crore, thanks to easing supply chain issues. The company sold a total of 5,17,395 vehicles during this period.

Maruti Suzuki’s Q2 net profit rises 4 times on easing supply chain issues
Maruti Suzuki's Q2 net profit rises 4 times on easing supply chain issues

Maruti Suzuki’s Q2 net profit for FY23 has increased by 4 times to Rs 2061.50 crore, thanks to easing supply chain issues, from Rs 475.30 crore in Q2 FY2022. The company’s stock soared over 5.60% and ended above the 52-week high mark on Friday. 

During this period, Maruti Suzuki sold a total of 5,17,395 vehicles, which the company says is the highest ever in any quarter. While sales in the domestic market stood at 4,54,200 units, the company recorded exports of 63,195 units. 

Maruti Suzuki says that the same period of the previous year was marked by an acute shortage of electronic components and consequently the company could sell a total of 3,79,541 units, comprising 3,20,133 units in domestic and 59,408 units in export markets. 

Maruti Suzuki says that its pending customer orders stand at about 4,12,000 vehicles at the end of this quarter out of which 1,30,000 vehicle pre-bookings are for the recently launched models, including the Grand Vitara. During Q2 FY2023, the company registered its highest-ever quarterly net sales of Rs 28,543.50 crore as opposed to Rs 19,297.80 crore in the same period last year. 

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According to Maruti Suzuki, some key reasons for margin movement include a relatively better sales volume leading to improved capacity utilisation, favourable foreign exchange variation, cost reduction efforts, and improved realisation. However, the negative factors include higher advertisement expenses and higher power & fuel expenses. 

Thanks to better-than-expected results of the second quarter for FY2023, Maruti Suzuki’s share soared 5.60 percent in Friday’s trade, above the 52-week high mark on the back of strong financials. The company is hopeful about matching industry growth rate in the next fiscal.

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First published on: 28-10-2022 at 18:40 IST