Maruti Suzuki Q4 Results: Net Profit beats estimates

Maruti Suzuki India Limited, the country's biggest passenger vehicle producer, finished the final quarter of FY22 on a solid note as it detailed robust growth in net profit over a similar quarter last year as its revenues additionally showed a twofold digit improvement. 

Here are the vital action items from its income-

Maruti’s Net profit beat estimates: Maruti Suzuki has reported an increase in net profit to Rs 1,839 crore, up by 57.7% YoY. Last quarter the net profit reported was Rs 1,011.3 crore. Analysts had earlier anticipated a profit of about Rs 1482 crore. 

Maruti’s Revenue rise: The revenue was up 11.3% YoY to Rs 26,740 crore. Last year in the March quarter, the revenue reported by India's largest carmaker was Rs 24,035 crore. The analysts have earlier estimated revenue of Rs 26,662 crore. On a sequential basis, the revenue was higher by 15% from Rs 23,253 crore recorded in the March quarter.

Consolidated revenue for FY22 jumped 26 percent to Rs 88,330 crore from the revenue of Rs 70,372 crore reported in the last year.

EBITDA increase: Earning Before Interest, Tax, Depreciation, and Amortization increased by 30% YoY to Rs 2,246 crore in Q4FY22. The numbers are higher than the analysts' estimates of Rs 2,173 crore. EBITDA margin stood at 9.1% against 8.29% in the year-ago period and 6.71% in Q3FY22.

Update on sales number: The company sold 0.7% fewer vehicles in the Jan-Mar 22 period compared to the same period in the last year. The total number of vehicles sold was 4.88 lakh units. Sequentially, the number of units sold has increased. Domestic market sales were down 8% at 4.2 lakh units. 

Export number increase: The company recorded the highest ever export numbers at 68,454 units in Q4FY22 compared to 64,995 units in Q3FY22. YoY, the company reported a growth of 92.7% in the export number.

The increasing price of commodities: The prices of commodities such as steel, aluminum, and precious metals witnessed an unprecedented increase during this year. The company was forced to increase the prices of vehicles to partially offset this impact. The company continues to work on cost reduction efforts to minimize the impact on customers.

Costs: The raw material cost as a percentage of revenue from operations declined to 45% as compared to 50% in the year-ago quarter. Compared to the previous quarter, this was an increase of 200 bps. Employee cost as a percentage of revenue from operations increased marginally by 10 bps on year to 3.9% However, on a sequential basis, it witnessed a decline of 30 bps.

Dividend: The company announced a dividend of Rs 60 per share, totaling Rs 1,813 crore. This is a special one-time gesture to thank shareholders for their patronage and support as the company commemorates its 40th year since its inception. The date of payment of a dividend is 8 September 2022.

The share price closed 1.13% lower at Rs 7631 per share today.