Maruti Suzuki India Limited , India's leading automobile manufacturer, has released its financial results for the first quarter, showing a modest increase in profit despite challenging market conditions.

Financial Highlights

The company reported a net profit of ₹37,117.00 million for the quarter, representing a 1.7% increase from ₹36,499.00 million in the same period last year. Net sales rose by 8.1% to ₹366,247.00 million, up from ₹338,753.00 million in the comparable quarter.

Sales Performance

Maruti Suzuki sold a total of 527,861 vehicles during the quarter, marking a 1.1% increase from the previous year. While domestic sales declined by 4.5%, this was offset by a robust 37.4% growth in exports, highlighting the company's strong performance in international markets.

Market Dynamics and Operational Insights

The company noted that the domestic passenger vehicle industry continued to face a sluggish demand environment. However, Maruti Suzuki's rural market demand showed stronger performance compared to urban areas in the first quarter.

Strategic Developments

Maruti Suzuki executives provided updates on several key areas:

1. CAFE III Regulations: The company reported good progress in ongoing discussions with the Indian government regarding new fuel efficiency regulations, with final rules for India's CAFE III standards expected soon.

2. SUV Focus: Maruti Suzuki announced plans for a strong SUV presence in its future model range, aligning with current market trends.

3. Rare Earth Magnet Supply: Engineers are addressing challenges related to China's rare earth magnet export ban, though the company stated that the ban has no immediate effect on operations.

4. Q2 Outlook: The company remains optimistic about domestic car sales for the second quarter and the upcoming festive season.

Corporate Governance and Future Plans

In its recent board meeting, Maruti Suzuki made several important decisions:

1. Statutory Auditor Appointment: The board approved the appointment of Price Waterhouse Chartered Accountants LLP as the Statutory Auditors for a term of five years.

2. Director Re-appointment: Mr. Kenichiro Toyofuku was re-appointed as Whole-time Director designated as Director (Sustainability) for a further period of three years.

3. Memorandum of Association Update: The board approved alterations to the Object Clause of the company's 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.

These decisions reflect Maruti Suzuki's commitment to good governance and its strategic vision for future growth and sustainability in the evolving automotive landscape.

The company will seek shareholder approval for these changes at its upcoming Annual General Meeting.

Despite facing challenges in the domestic market, Maruti Suzuki's strong export performance and strategic initiatives demonstrate its resilience and adaptability in a dynamic automotive industry.

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.