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Maruti Suzuki — Q2 FY24
Maruti Suzuki reported a strong Q2 FY24 with record quarterly sales volume of 552,055 units, net sales of INR 35,535 crore (up 24.5% YoY), and net profit of INR 3,716 crore (up 80% YoY).
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Maruti Suzuki reported a strong Q2 FY24 with record quarterly sales volume of 552,055 units, net sales of INR 35,535 crore (up 24.5% YoY), and net profit of INR 3,716 crore (up 80% YoY). The company gained 120 bps market share in PVs and achieved leadership in the SUV segment with ~23% share. Growth was driven by easing semiconductor shortages, favorable commodity prices (especially precious metals), cost reduction efforts, and a richer product mix. Management remains cautiously optimistic on demand, with festive season industry growth of ~18% so far. However, the small car segment continues to weaken due to affordability issues, and pending orders have reduced to ~250,000 units. Key risk: rising steel prices could pressure margins in H2.
मारुति सुजुकी ने दूसरी तिमाही में शानदार प्रदर्शन किया। कंपनी ने रिकॉर्ड 5,52,055 गाड़ियां बेचीं। बिक्री 35,535 करोड़ रुपये रही, जो पिछले साल से 24.5% ज्यादा है। मुनाफा 3,716 करोड़ रुपये हुआ, जो 80% बढ़ा। कंपनी ने एसयूवी सेगमेंट में 23% हिस्सेदारी के साथ बाजार में बढ़त बनाई। चिप की कमी कम होने, कच्चे माल के सस्ते होने और लागत घटाने से यह सफलता मिली। त्योहारी सीजन में अब तक 18% बिक्री बढ़ी है, लेकिन छोटी कारों की मांग कमजोर है। अब सिर्फ 2.5 लाख गाड़ियों का ऑर्डर बकाया है। आगे स्टील के दाम बढ़ने से मुनाफा कम हो सकता है।
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Rising steel prices may pressure margins
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Total Sales Volume
552,055 units
+6.7% YoY
Highest ever quarterly sales volume for the company.
SUV Market Share
23%
+120bps YoY
Maruti achieved leadership in the SUV segment during Q2.
Pending Orders
250,000 units
-13% QoQ
Order backlog reduced from 288,000 at end of Q2 to ~250,000 currently.
Discount per Vehicle
INR 17,700
+9% QoQ
Discounts increased slightly from INR 16,214 in Q1 to INR 17,700 in Q2.
What Changed vs Last Quarter
NEW
Exports target of 750,000-800,000 units by FY2031
Management plans a threefold increase in export volumes from current levels to about 750,000-800,000 units by 2030-31.
NEW
FY24 CapEx above INR 8,000 crore
Capital expenditure for the current fiscal year is expected to exceed INR 8,000 crore.
NEW
Market share recovery to 50%
Management expressed commitment to gradually recover market share to the 50% mark over time.
DROPPED
Acquire SMG by March 2024
Board approved acquisition of Suzuki Motor Gujarat shares from SMC, to be completed within FY24 at net book value.
DROPPED
Target 4 million units capacity by 2030-31
Production capacity to double from current levels, with 1 million capacity at Kharkhoda and additional 1 million under study.
DROPPED
EV launch in next financial year
EV manufacturing facility at SMG will be part of MSIL; launch expected in FY25.
NEW RISK
Rising steel prices may pressure margins
Steel prices have started increasing, which could negatively impact gross margins in Q3 and beyond.
NEW RISK
Margin sustainability questioned by analysts
Analysts raised concerns about one-off gains and inventory adjustments boosting margins; management clarified no one-offs but acknowledged exceptional quarter with all positives aligning.
NEW RISK
Capacity fungibility constraints
Shifting production mix towards SUVs may require investments in flexibility, potentially impacting near-term volumes and margins.
RISK GONE
Semiconductor shortage persists
Electronic component shortages caused 28,000 units of lost production in Q1; limited visibility on supplies.
RISK GONE
Discounts and inventory pressure
Discounts increased to INR 16,214 per vehicle from INR 12,748 YoY; dealer inventory at 125,000 units (~4 weeks).
Fast read
Guidance and risk preview
Management plans a threefold increase in export volumes from current levels to about 750,000-800,000 units by 2030-31.
Steel prices have started increasing, which could negatively impact gross margins in Q3 and beyond.
View Risks →