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Maruti Suzuki India Ltd. reported September-quarter operating margins that were the highest since the December quarter of financial year 2021 or seven quarters. As a result, shares ended the day at a 52-week high.

With respect to other parameters, net profit for the quarter surpassed street expectations while the topline and operating performance met estimates.

Revenue for the quarter increased 45.7 percent year-on-year to Rs 29,931 crore, marginally higher than the CNBC-TV18 poll of Rs 29,590 crore. Growth in the topline was led by a low base and strong volume growth.

The company's volumes have increased both on a year-on-year and a sequential basis. Volumes during the quarter increased 36.3 percent from last year to 5.17 lakh units. On a quarter-on-quarter basis, the volumes increased 10.4 percent.

The strong volume growth aided the company's capacity utilisation.

Operationally, the company's operating profit or EBITDA increased to Rs 2,769 crore. The number was in-line with the Rs 2,751 crore estimated by analysts. EBITDA in the September 2021 quarter stood at Rs 855 crore.

EBITDA Margin increased 500 basis points to 9.2 percent from 4.2 percent last year. The street was working with an estimate of 9.3 percent.

The company attributed the improvement in margin to better capacity utilisation, favorable forex, cost reduction efforts, higher non-operating income and softer commodity prices. The positives were slightly offset by higher advertisement expenses.

Raw Material costs as a percentage of sales declined 390 basis points from last year to 76.5 percent from 80.4 percent.

Pending customer orders stood at 4.12 lakh vehicles out of which 1.3 lakh are pre-bookings for recently launched models.

Shares of Maruti Suzuki India ended 5.6 percent higher at Rs 9,548.

First Published:Oct 28, 2022 2:17 PM IST