Maruti Suzuki Q1 Results 2022: Profit Up 130% but Misses Estimates

Maruti Suzuki Q1 Results 2022

Maruti Suzuki India Limited, India's biggest passenger vehicle producer, started the first quarter of FY23 on a solid note but still failed to beat estimates. The share price of Maruti Suzuki was trading at Rs 8686.50 per share, up 0.33% on Thursday afternoon. The shares have gained over 15% YTD.

Maruti Suzuki Q1 Results 2022: Key Highlights

  • Profits: Rs 1,013 crore, up 130% YoY
  • Revenue: Rs 26,499.80 crore, up 49.1% YoY
  • Vehicles sold: 467,931 vehicles were sold in the June quarter

Let us look at the Q1FY23 result of Maruti Suzuki in detail:

Maruti Suzuki Q1 FY23 Earnings: Net Profit Misses Estimates 

Maruti Suzuki has reported an increase in net profit to Rs 1,012.8 crore, up by 130% year on year. Analysts had earlier anticipated a profit of about Rs 1,540 crore. Last quarter, the net profit reported was Rs 1,839 crore, down 45% due to higher input costs, weak operating performance, and lower other income.

Maruti Suzuki Q1 Results 2022: Revenues Rise 

The revenue was up 49.1% year on year to Rs 26,499.80 crore. Last year, in the June quarter, the revenue reported by India's largest carmaker was Rs 17,770.7 crore. The analysts had earlier estimated revenue of Rs 25,964.5 crore. On a sequential basis, the revenue was down 0.9% from Rs 26,740 crore recorded in the March quarter.

Maruti Suzuki Q1 Results 2022: Operating Profit 

Operating profit for Q1FY23 increased to Rs 1,260.7 crore compared to Rs 77.9 crore in Q1FY22 (the quarter was affected by the COVID second wave). The profit declined 29.2% sequentially due to higher sales promotion expenses and high commodity prices, a favorable foreign exchange variation, and partially offset by the hike in vehicle prices. 

Operating profit margin increased by 450 bps year on year to 5% for the June quarter on a low base. Sequentially, it contracted 200 bps.

Maruti Suzuki Q1 FY23: Update on Sales Number

The company sold 32.3% more vehicles in the Apr-Jun 22 period compared to the same period last year. The total number of vehicles sold was 4.67 lakh units. Sequentially, the number of units sold decreased. Domestic market sales stood at 398,494 units.

Maruti Suzuki Q1 Results 2022: Export Numbers Increase 

The company recorded the highest ever export numbers at 69,437 units in Q1FY23 compared to 68,454 units in Q4FY22. 

Maruti Suzuki Q1 FY23 Earnings: Business Impact

Shortage of electronic components in the June quarter resulted in about 51,000 vehicles not being produced. At the end of the June quarter, the company had 2,80,000 pending customer orders. The company is making efforts to fulfill these orders quickly. 

The increase in prices of commodities impacted the company's Operating Profit. The company was forced to increase vehicle prices to partially offset the impact.

Maruti Suzuki Q1 Results 2022: Analyst's View

BofA Securities: The firm maintained a BUY rating on Maruti with a target price of Rs 9,500. It believes that demand and new model comments are positive even though the margins were a miss on the back of a weaker yen but were not that bad. New Brezza's response is solid and the newly launched Grand Vitara's pricing is awaited.

  • How was Maruti Suzuki's Q1FY23 results?

  • What is the target price for Maruti Suzuki?

  • How many vehicles did Maruti sell in Q1FY23?