InvestorQ : How did the profits of Maruti Suzuki jump so sharply in Q2FY23?
sara Kunju made post

How did the profits of Maruti Suzuki jump so sharply in Q2FY23?

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Mary Joseph answered.
1 month ago
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It was a quarter of record profit growth for Maruti but first let me run you through it stop line numbers. Maruti Suzuki reported 45.7% growth in sales for September 2022 quarter at Rs29,943 crore. The company sold 517,395 units in Q2FY23, which included 454,200 units in domestic sales and 63,195 units of export sales. Total pending orders at Maruti stood at 412,000 units, of which a third pertain to recently launched models. To an extent, the festival season which falls in the last few months of the year, led to a sharp spike in sales and the full impact of this festive season will be visible in the December quarter numbers.

Maruti Suzuki

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 29,943

₹ 20,551

45.70%

₹ 26,512

12.94%

Net Profit (Rs cr)

₹ 2,113

₹ 487

333.87%

₹ 1,036

103.87%

Diluted EPS (Rs)

₹ 69.93

₹ 16.12

₹ 34.30

Net Margins

7.06%

2.37%

3.91%

Let me now turn to the profitability of the company. Maruti reported consolidated PAT growth of 334% at Rs2,113 crore. Operating profits at Rs2,946 crore in Q2FY23 was up more than 20-fold yoy. Here are some of the triggers for this massive profit growth. It was helped by better sales volumes, improved realizations, cost reduction efforts and favourable exchange rate movements. Better sourcing resulted in raw material costs falling 160 bps while the manpower costs also fell by 60 basis points on a yoy basis. Net profit margins at 7.06% in Q2FY23 is higher than the 2.37% in Q1FY22 and also betters 3.91% in Q1FY23.

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