India’s largest car maker Maruti Suzuki India Ltd (MSIL) on Wednesday reported over two-fold jump in its consolidated net profit in the first quarter of the financial year 2022-23.
MSIL’s net profit jumped to Rs 1,036 crore mainly due to a low base in the year-ago period when the company had reported Rs 440.8 crore profit. The company’s production was hampered by COVID-related disruptions.
The company sold a total of 467,931 vehicles during the quarter with exports being the highest ever at 69,437 units.
The auto major has hiked prices six times from January 2021 to June 2022, while cutting back on discounts as demand rebounded from pandemic lows.
During the quarter, MSIL registered net sales of Rs 25,286.3 million as against Rs 16,798.7 in a year ago and the operating profit stood at Rs 1260.7 crore against Rs 77.9 crore million in Q1FY22.
EBITDA (earnings before interest, taxes, depreciation, and amortization) margin, a key measure of profitability, came at 7.2 per cent during the quarter from 4.6 per cent year-on-year.
The increase in prices of commodities adversely impacted the operating profit in Q1FY23, Maruti Suzuki said in its results exchange. “The company was forced to increase prices of vehicles to partially offset this impact and the profit before tax was also impacted by the non-operating income being lower in this quarter due to mark-to-market loss.”
“Shortage of electronic components in this quarter resulted in about 51,000 vehicles not being produced. Pending customer orders stood at about 280,000 vehicles at the end of the quarter and the company is making efforts to serve these orders fast,” the company said in a regulatory filing.
Shares of Maruti Suzuki gained over 1.5 per cent to close at Rs 8660.05 per share on the BSE as against nearly 1 per cent rise in the S&P BSE Sensex.