Maruti Suzuki India Limited , India's leading automobile manufacturer, has reported a modest 1.7% increase in net profit for the first quarter. The company's financial results, released on July 31, reveal a mixed performance with strong export growth offsetting a decline in domestic sales.

Financial Highlights

For the quarter ended June 30, Maruti Suzuki reported:

• Net profit of ₹37,117.00 million, up from ₹36,499.00 million in the same quarter of the previous year
• Total revenue from operations of ₹384,136.00 million, an 8.1% increase year-on-year
• Total sales volume of 527,861 units, a 1.1% growth compared to the same period last year

Sales Performance

The company's sales performance showed contrasting trends in domestic and export markets:

• Domestic sales declined by 4.5% to 430,889 units
• Exports surged by 37.4% to 96,972 units

Segment-wise Performance

Market Dynamics

Maruti Suzuki executives noted that rural market demand was stronger than urban demand in the first quarter. The company remains optimistic about domestic car sales for the second quarter and the upcoming festive season.

Strategic Developments

The company's board approved several strategic initiatives:

1. Expansion of Business Scope: The board approved alterations to the Object Clause of the Memorandum of Association, significantly expanding Maruti Suzuki's potential business activities. New areas include:

   • Integrated fleet and mobility services
   • Used car business
   • Electric vehicle charging infrastructure
   • Carbon credit trading
   • End-of-life vehicle recycling

2. Leadership Continuity: Mr. Kenichiro Toyofuku was re-appointed as Whole-time Director designated as Director (Sustainability) for another three-year term, from December 5, 2025, to December 4, 2028.

3. New Auditors: The board approved the appointment of Price Waterhouse Chartered Accountants LLP as the new Statutory Auditors for a five-year term, subject to shareholder approval at the upcoming Annual General Meeting.

Regulatory and Industry Updates

• Maruti Suzuki is anticipating the final rules for India's CAFE III fuel efficiency standards, with ongoing discussions with the government progressing well.
• The company is addressing challenges related to China's rare earth magnet export ban, though it currently has no immediate effect on operations.
• Engineers are working on solutions to potential supply chain disruptions.

Future Outlook

Maruti Suzuki has indicated a strong focus on SUVs in its future model range, aligning with current market trends. The company's expansion into new business areas, particularly in sustainable mobility solutions, signals a strategic shift to adapt to changing automotive industry dynamics.

These financial results and strategic decisions will be presented for shareholder approval at the 44th Annual General Meeting scheduled for August 28.

Maruti Suzuki India Limited , India's leading automobile manufacturer, has released its financial results for the first quarter, showcasing a modest growth in profit amid a challenging market environment.

Financial Highlights

For the quarter ended June 30, Maruti Suzuki reported:

• Net profit of ₹37,117.00 million, up 1.7% from ₹36,499.00 million in the same quarter last year
• Net sales of ₹366,247.00 million, an increase of 8.1% compared to ₹338,753.00 million in the same quarter last year
• Total sales volume of 527,861 units, representing a 1.1% growth year-on-year

Market Dynamics and Company Strategy

A Maruti Suzuki executive highlighted that rural market demand was stronger than urban demand during the first quarter. This trend could be a positive sign for the company, as rural markets have historically been a significant growth driver for the Indian automotive sector.

The company also reported good progress in ongoing discussions with the Indian government regarding new fuel efficiency regulations. Maruti Suzuki executives announced that the final rules for India's CAFE III (Corporate Average Fuel Efficiency) standards are expected to arrive soon. This development is crucial for the company's future product planning and compliance strategies.

Focus on SUVs and Future Model Range

In a significant strategic move, Maruti Suzuki executives announced that SUVs will have a strong presence in the company's future model range. This aligns with the current market trend in India, where SUVs have been gaining popularity across various segments.

Export Performance and Challenges

Maruti Suzuki's exports showed robust growth, with a 37.4% increase to 96,972 units. This strong export performance helped offset a 4.5% decline in domestic sales, which stood at 430,889 units for the quarter.

The company is also addressing challenges arising from China's rare earth magnet export ban. While a Maruti Suzuki executive indicated that the ban has no immediate effect on operations, the company's engineers are working on solutions to mitigate potential future impacts.

Outlook

Despite the challenges, Maruti Suzuki remains optimistic about domestic car sales for the second quarter and the upcoming festive season. The company's focus on SUVs, strong rural demand, and export growth are expected to be key drivers for its performance in the coming quarters.

As Maruti Suzuki navigates through evolving market dynamics and regulatory landscapes, its strategic focus on SUVs and rural markets, coupled with its proactive approach to addressing potential supply chain challenges, positions the company to capitalize on the recovering automotive market in India.

Upcoming Changes

In other developments, Maruti Suzuki's Board of Directors has approved several key changes:

1. Alteration of the company's Object Clause in its Memorandum of Association, expanding its scope to include new business areas such as electric vehicle charging infrastructure, carbon credit trading, and end-of-life vehicle recycling.

2. Re-appointment of Mr. Kenichiro Toyofuku as Whole-time Director designated as Director (Sustainability) for a further period of three years, effective from December 5.

3. Appointment of Price Waterhouse Chartered Accountants LLP as the new Statutory Auditors for a term of five years, subject to shareholders' approval at the upcoming Annual General Meeting on August 28.

These changes reflect Maruti Suzuki's commitment to adapting to the evolving automotive landscape and strengthening its corporate governance structure.