Maruti vs Bajajfinsv Q1 FY25

Maruti Suzuki reported a strong Q1 FY25 with net sales of ₹33,875 crore (+9.8% YoY) and net profit of ₹3,650 crore (+46.9% YoY), driven by cost reduction, favorable commodity prices, and forex gains. Total volumes grew 4.8% YoY to 521,868 units, with exports up 11.6% to 70,560 units. CNG penetration reached a record 33% of domestic sales. Management noted muted domestic demand due to heat waves and elections but remains optimistic about festive season recovery. Capacity utilization is ~85%, and inventory stands at 37 days. Risks include potential commodity price increases and yen appreciation impacting margins. Guidance for export volumes of 300,000 units for FY25 remains intact.

Guidance read

Export volume target of 300,000 units for FY25: Management reiterated that 300,000 export units is achievable for the full year, with growth in Middle East and Latin America. CNG vehicle sales target of 600,000 units for FY25: Management guided for 600,000 CNG vehicle sales in FY25, with Q1 achieving slightly less than 150,000 units. Six EV models planned by 2031: Maruti plans to launch six electric vehicle models by 2031, with the first EV to be displayed at Auto Expo in January 2025. 28 models in portfolio by end of decade: The company aims to expand from 18 to 28 models by 2030-31, adding at least 10 new models.

Risk read

Key risks include Commodity price increases — CFO noted that commodity prices are dynamic and could reverse, impacting margins. Non-ferrous metals have already seen some increase.; Yen appreciation impacting forex tailwind — CFO acknowledged that yen has started appreciating, which could moderate the forex benefit seen in Q1.; Muted domestic demand and high discounts — Discounts rose 50% QoQ to ₹21,700 per vehicle due to heat wave and elections. Demand recovery depends on festive season.; CAFE-3 norms compliance uncertainty — Stringent CAFE-3 norms from April 2027 may require significant EV/ hybrid mix. Super credits and penalties are still under policy consideration..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Bajaj Finserv reported a mixed Q1 FY25. Consolidated PAT grew 10% YoY to INR 2,138 crore, but excluding one-offs, growth was 8%. Revenue rose 35% to INR 31,480 crore. BAGIC posted strong GWP growth of 24% to INR 4,761 crore, though combined ratio worsened to 103.7% due to large commercial claims. BALIC's individual rated new business grew 26%, but PAT fell 37% due to new business strain. Bajaj Finance resumed eCom and Insta EMI card issuance post-RBI embargo. Emerging businesses' losses widened to INR 119 crore. Management highlighted margin pressure from regulatory changes and elevated loan losses, but expects improvement in H2. Key risk: elevated credit costs and collection efficiency in BFL's rural portfolio.

Guidance read

BAGIC expects combined ratio to normalize in subsequent quarters: Management indicated that large commercial claims in Q1 are one-offs and not expected to recur, with combined ratio likely improving. BALIC margins may see a pause in expansion this year due to surrender regulations: New surrender value norms could temporarily impact margin expansion, but medium-term expansion expected through product filings and cost optimization. BFL expects collection efficiency to improve in H2: Steps taken to strengthen collections and slow rural B2C business should yield results in the second half of FY25. Bajaj Finserv Health to provide long-term plan in 6-9 months: Post-Vidal acquisition, management will outline a complete long-range plan including breakeven visibility within 6-9 months.

Risk read

Key risks include Elevated loan losses and collection efficiency in BFL — BFL's loan losses and provisions were elevated in Q1 due to muted collection efficiencies and increase in stage 2 assets by INR 864 crore.; Impact of new surrender regulations on BALIC margins — New IRDA surrender value norms may temporarily slow margin expansion; management was evasive on quantifying the impact.; Large commercial claims in BAGIC may recur — Though termed one-offs, large property and liability claims caused combined ratio deterioration; similar claims could arise in future.; Vidal acquisition may lead to customer attrition — Insurance partners of Vidal may withdraw business due to conflict of interest with Bajaj Finserv's insurance arms..

Promise ledger

Of 3 tracked promises, management 0 met, 0 close, 3 missed.