Maruti Suzuki Reports Q1 Results: Profit Up 1.7% Amid Rural Demand Strength and SUV Focus
Maruti Suzuki India Limited announced Q1 financial results with a 1.7% increase in net profit to ₹37,117.00 million and 8.1% growth in net sales to ₹366,247.00 million. Total sales volume grew 1.1% to 527,861 units. Rural demand outperformed urban markets. The company is focusing on SUVs for future models and saw a 37.4% increase in exports. Maruti Suzuki is addressing challenges from China's rare earth magnet export ban and awaiting final CAFE III standards. The Board approved changes including expansion of business areas and reappointment of key personnel.

*this image is generated using AI for illustrative purposes only.
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
Particulars (₹ in million) | Q1 Current Year | Q1 Previous Year | Change (%) |
---|---|---|---|
Net Sales | 366,247.00 | 338,753.00 | 8.1% |
Net Profit | 37,117.00 | 36,499.00 | 1.7% |
Sales Volume (units) | 527,861 | 521,868 | 1.1% |
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:
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.
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.
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.
Historical Stock Returns for Maruti Suzuki
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-2.19% | -0.58% | -0.88% | -4.53% | -7.69% | +100.03% |