Maruti Suzuki Q2 net at Rs 2,061 crore

CHENNAI: Maruti Suzuki India Ltd, the country largest car maker, closed the second quarter of FY23 with a higher net profit of Rs 2,061.5 crore.

In a regulatory filing on Friday, the company said it earned total operational revenue of Rs 29,930.8 crore and a net profit of Rs 2,061.5 crore for the quarter ended on September 30.

For the previous year's corresponding period, Maruti Suzuki's total operational revenue stood at Rs 20,538.9 crore and a net profit of Rs 475.3 crore.

During the quarter under review, the company had sold 517,395 vehicles -- domestic 454,200 units, exports 63,195 units.

Shortage of electronic components impacted production by about 35,000 vehicles in this quarter.

The same period previous year was marked by acute shortage of electronic components and consequently the company could sell a total of 379,541 units comprising 320,133 units in domestic and 59,408 units in export markets.

Pending customer orders stood at about 412,000 vehicles at the end of this quarter out of which about 130,000 vehicle pre-bookings are for recently launched models, the company said.

"Maruti Suzuki Q2 performance was better-than-street estimates. It s new models - New Brezza, New Baleno, and Vitara have been gaining g ood traction. Pending customer orders stood at about 412k vehicles at the end of the quarter, of which 130k units for the newly launched models. The company has addressed white spaces in its portfolio through the launch of Brezza and Grand Vitara," said Mansi Lall, Research Associate, Prabhudas Lilladher Pvt Ltd

According to Lall, higher competition in the SUV space and slow revival in the entry segment still remains a concern.

Production levels for the company are almost back to normal levels as the chip issue is largely addressed.

"However, market share gains remain key for Maruti, due to the competitive intensity in the UV space. Maruti has lost significant market share over the last few years (41 per cent in Sep-22YTD vs 51 per cent in FY19)," Lall said.