Maruti Suzuki shares jump nearly 4% post stellar Q1 earnings; check details

In early trade, the stock rose 3.8% to ₹13,622.3 on the National Stock Exchange (NSE) and gained 3% to ₹13,564 on the BSE.

Maruti Suzuki Q1 results

The auto major posted a 47% rise in profit after tax to ₹3,650 crore for Q1 FY25, up from ₹2,485 crore in the year-ago period.

"The profit increased on account of cost reduction efforts, favourable commodity prices and foreign exchange gains," it stated.

Addressing an investor conference, Rahul Bharti, Executive Director of Corporate Affairs at Maruti Suzuki India, said the gains from favourable commodity prices and foreign exchange were partly offset by higher discounts, which rose to an average of ₹21,700 per vehicle in the first quarter from ₹14,500 per vehicle in the fourth quarter of last fiscal.

The carmaker sold 5,21,868 vehicles during the first quarter, up 5% from the same period last fiscal year. In the June quarter, it sold 4,51,308 units in the domestic market, an increase of 4% year over year.

On the outlook, Bharti said the company is sticking with auto industry body SIAM's forecast of low single-digit growth at the start of the fiscal year due to various factors, including the high base effect.

With six electric vehicle models lined up until 2031, Bharti said almost one EV model will be launched every year thereafter. The company's export sales rose 12% in the first quarter to 70,560 units.

He said the Middle East, Latin America, and Africa have shown growth, and the target of achieving 3 lakh exports in the current financial year is achievable.