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Maruti Suzuki, India’s leading car manufacturer, is poised to reveal strong financial results for the fourth quarter, driven by a notable surge in sales volumes, particularly in the premium SUV segment. Analysts predict that the company’s net profit for the quarter could reach Rs 3,916 crore, marking a nearly 50% increase from the same period last year. Revenue from operations is also expected to show a significant uptick, projected to rise by 21% to Rs 38,772 crore, attributed to increased unit sales, a favorable product mix, and higher exports.
During the January-March quarter, Maruti Suzuki is estimated to have sold approximately 5.84 lakh cars, representing a 13.4% increase compared to the previous year. Earnings before interest, tax, depreciation, and amortization (EBITDA) are forecasted to expand by 43% year-on-year to Rs 5,047 crore. This growth is anticipated to be driven by a greater share of SUV sales, price adjustments, cost-saving measures, and favorable currency movements.
Notably, Maruti Suzuki is expected to lead the growth in SUV sales, with a projected increase of 72% year-on-year, according to HDFC Securities. However, concerns linger regarding the demand outlook, particularly in the entry-level segment, where sales may decline. Mini car volumes, including models like Alto and S-Presso, are forecasted to drop by 28% year-on-year, while compact car volumes could see a slight decrease of 3-4%.
Maruti Suzuki announced price hikes across its models earlier in the year, citing market conditions as the reason. Subsequently, in April, the company implemented further price increases, with select variants of models like Swift and Grand Vitara Sigma seeing hikes of up to Rs 25,000. This marks the second price hike in three months.
Despite these adjustments, Maruti Suzuki’s shares closed slightly lower on the NSE, reflecting a broader trend in the market. Nevertheless, the company’s stock has seen a strong performance, rallying over 24% since the beginning of the year, outpacing the Nifty’s gains of 3%.
