Maruti vs Grasim 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.

Grasim's Q1 FY25 consolidated revenue stood at INR 33,861 crore and EBITDA at INR 4,076 crore. The VSF business achieved record quarterly volumes of 212 KT, while chemicals saw improved ECU realizations of INR 32,529. The paints business (Birla Opus) commenced commercial production at three plants, with over 80% of planned products in distribution and 102 depots operational. The B2B e-commerce platform Birla Pivot reached a quarterly run rate of over INR 550 crore. Management maintained a cautiously optimistic outlook, with VSF demand supported by fiber substitution and chemicals benefiting from stable caustic prices. However, chlorine remains under pressure due to competitor capacity additions. Key risks include sustained losses from new businesses and potential demand slowdown in key markets.

Guidance read

Paints: High single-digit market share by FY25 end: Management reiterated target of achieving high single-digit market share by end of FY25. Paints: 50,000 active dealers by FY25 end: Target to have 50,000 active dealers by end of FY25, currently on track. Renewables: Double capacity to 2 GW by FY25 end: Renewable energy capacity to double from 1 GW to 2 GW by end of FY25. B2B e-commerce: $1 billion revenue in three years: Birla Pivot aims to reach $1 billion in revenue within three years.

Risk read

Key risks include Paints business losses may persist — Paints business is in investment mode with significant marketing spend; losses expected to continue for at least three years.; Chlorine oversupply from competitor capacity — Competitor added significant chlorine capacity in Gujarat, putting downward pressure on chlorine prices and ECU.; Paints revenue understated due to CWIP accounting — Revenue from trial production is capitalized to CWIP, making reported revenue not fully representative of actual sales.; Global demand slowdown and geopolitical risks — Elevated geopolitical risks and high interest rates could impact global textile demand and chemical prices..

Promise ledger

Scorecard data is being built as historical quarters are processed.