The domestic automotive market has witnessed an exceptional performance by the country’s largest car manufacturer, Maruti Suzuki India Ltd. (MSIL), as it reported a staggering 47.8% increase in its fourth-quarter net profit. The company, which has consistently held a prime position in the Indian automotive sector, announced a net profit of ₹3,877.8 crore, a significant leap from the ₹2,623.6 crore reported in the corresponding quarter of the previous year.
This impressive financial outcome has been attributed to a combination of higher sales volumes, favorable movements in commodity pricing, relentless efforts towards cost reduction, and a substantial increase in non-operating income, all of which have worked in tandem to enhance the company’s profitability.
The company’s net sales saw a substantial jump, soaring to ₹36,697.5 crore, a notable increase from the ₹30,821.8 crore recorded in the same quarter of the previous fiscal year. This surge in revenue corresponds with the elevated vehicle sales numbers where MSIL sold a total of 5,84,031 vehicles in the quarter ending March 31, 2024. This figure reflects a significant 13.4% growth over the numbers from the same period in the preceding year.
Analyzing the yearly performance, Maruti Suzuki’s profitability narrative continues with a robust 64% increase in net profit for the fiscal year 2024, reaching a commendable ₹13,209.4 crore, compared to the ₹8,049.2 crore reported in the fiscal year 2023. This rise can be traced back to the company’s ability to augment its sales alongside effective cost management strategies.
Adding to the financial success, the company’s annual net sales burgeoned to ₹1,34,937.8 crore, marking a 19.9% climb from the previous year’s figures. By achieving a notable milestone, MSIL surpassed the sales of 20 lakh units for the first time in the fiscal year 2024. Throughout the fiscal year, the company sold a total of 21,35,323 vehicles, an 8.6% increase from the sales figures of the prior year. This sales volume underscores Maruti Suzuki’s dominance and growing stature in the Indian automotive landscape.
Rewarding shareholders for the company’s exceptional performance, the board of directors at MSIL recommended the distribution of the highest-ever dividend in the company’s history—₹125 per share, which has a face value of ₹5 per share. This represents a considerable uptick from the ₹90 per share dividend announced in the fiscal year 2023. Despite the positive news, the company’s share price saw a slight dip of 1.7%, closing at ₹12,687.05 on the Bombay Stock Exchange (BSE) on Friday.
In retrospect, Maruti Suzuki’s track record of consistent growth and strong sales figures has reaffirmed the company’s market leadership. The strategic measures undertaken by MSIL, ranging from prudent cost control, tapping into favorable market conditions, to achieving sales efficiency, have all played an integral role in propelling the company towards its current financial zenith.
Moreover, by surpassing the 20 lakh annual sales milestone, Maruti Suzuki has set a new benchmark for productivity and growth in the Indian automotive sector. Looking forward, the company’s focus on delivering shareholder value, through both growth performance and enhanced dividends, is set to bolster investor confidence and position Maruti Suzuki for sustained long-term prosperity in a competitive market landscape.
