Maruti Suzuki Q4 Profit Falls as Costs Rise

Maruti Suzuki Q4 Profit Falls as Costs Rise

Maruti Suzuki India Limited, the country’s leading automobile manufacturer, reported mixed fourth-quarter results with record-breaking sales volume but a slight decline in profitability. The company announced its financial performance for the quarter and fiscal year ended March 31, 2025, leveraging strong export growth.

Fourth Quarter: Volume Growth and Margin Pressure

For the January-March 2025 quarter, Maruti Suzuki achieved its highest-ever quarterly sales volume of 604,635 units, representing a 3.5% increase compared to the same period last year. This growth was driven by domestic sales of 519,546 units (up 2.8%) and exports of 85,089 units (up 8.1%).

Despite this volume growth, the company’s financial performance showed mixed results. Net sales for Q4 rose to ₹388,488 million from ₹366,975 million in Q4 FY2023-24, marking a 5.9% year-on-year increase. However, net profit declined by 4.3% to ₹37,111 million, down from ₹38,778 million in the corresponding quarter of the previous fiscal year.

The financial statements reveal that rising input costs and increased competition in the domestic market contributed to the profit decline despite higher sales. The company’s total expenses in Q4 FY2024-25 increased significantly, with cost of materials consumed rising to ₹144,709 million from ₹121,045 million in the same quarter last year.

“The fourth quarter demonstrated our ability to maintain sales momentum in a challenging environment, though profitability faced some pressure due to rising input costs and competitive market dynamics,” said Hisashi Takeuchi, Managing Director & CEO of Maruti Suzuki India Limited, in a statement accompanying the financial results.

Full Year: Record Breaking Performance

For the complete fiscal year 2024-25, Maruti Suzuki registered its highest-ever annual sales volume, net sales, and net profit. The company sold a total of 2,234,266 vehicles, marking a 4.6% increase over the previous fiscal year. Of these, 1,901,681 units were sold in the domestic market (up 2.7%), while 332,585 units were exported (up 17.5%).

The company’s net sales for FY2024-25 rose to ₹1,451,152 million, representing a 7.5% growth compared to ₹1,349,378 million in FY2023-24. Net profit reached an all-time high of ₹139,552 million, up 5.6% from ₹132,094 million in the previous fiscal year.

“In FY2024-25, the domestic market growth was quite muted. For the Company, a modest domestic sales growth of 2.7% was compensated by a healthy 17.5% export growth leading to an aggregate growth of 4.6% for the year,” the company noted in its press release.

Maruti Suzuki continued to strengthen its position as India’s leading passenger vehicle exporter for the fourth consecutive year, now contributing nearly 43% of the country’s total passenger vehicle exports.

Future Outlook

The Board of Directors has recommended a record dividend of ₹135 per share (face value of ₹5 per share) for FY2024-25, up from ₹125 per share in the previous year. The dividend, if approved at the Annual General Meeting scheduled for August 28, 2025, will be paid to eligible shareholders by September 3, 2025.

The company’s balance sheet remained robust, with total equity increasing to ₹940,467 million as of March 31, 2025, compared to ₹839,820 million a year earlier. The company also reported healthy cash generation from operating activities of ₹140,124 million for the fiscal year.

Looking ahead, Maruti Suzuki faces both opportunities and challenges. The company’s successful export strategy has helped offset domestic market sluggishness, but rising material costs and intense competition remain concerns. Additionally, the Board had approved in January 2025 a scheme of amalgamation between the company and Suzuki Motor Gujarat Private Limited, which is expected to streamline operations and enhance efficiency.

The company’s stock traded steadily following the announcement, reflecting investors’ mixed response to the results that showed strong annual performance but quarterly profit pressure.

As the Indian automobile market continues to evolve with shifting consumer preferences and regulatory changes, Maruti Suzuki’s ability to balance growth across domestic and export markets while managing costs will be crucial for maintaining its market leadership position in the coming fiscal year.

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