India's largest passenger car maker Maruti Suzuki India reported results that were a slight miss on analyst expectations, but grew significantly year-on-year.
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On a standalone basis, the company reported a net profit of Rs 2,623 crore, lower than a CNBC-TV18 poll, which had pegged the profit figure at Rs 2,773 crore.
Revenue for the quarter stood at Rs 32,048 crore, which was also lower than the Rs 32,675 crore estimate.
The company's operating profit or EBITDA at Rs 3,350 crore missed expectations of Rs 3,523 crore, while EBITDA margin turned out to be 30 basis points below estimate of 10.7 percent, coming in at 10.4 percent. On a year-on-year basis, margin expanded by 130 basis points.
Better sales volumes leading to improved capacity utilisation along with lower sales promotion expenses aided margin expansion. These factors were offset by higher advertisement expenses and unfavourable forex variations during the quarter.
While numbers may have been below a CNBC-TV18 poll, the company saw significant growth on a year-on-year basis.
For the financial year 2023, the company registered the highest-ever annual sales volume, exports, turnover and net profit. It also crossed the Rs 1 lakh crore turnover mark during the financial year. "The highest ever annual sales volume came despite the shortage of electronic components," the company said.
Maruti has also approved a new in-principal new production capacity of up to 10 lakh units to cater to the growing demand including exports. The total existing capacity of 13 lakh units in Manesar and Gurugram is fully utilised.
The period in which the capacity would be added and the capex needed for the same will be determined by the board at a later date. However, the company said that it will fund the capacity expansion through internal accruals.
For the March quarter, Maruti's volumes grew by 5.4 percent from last year to 5.14 lakh units, aided by healthy festive demand, easing of supply chain constraints and launches of new models.
Maruti's board has also declared its highest-ever dividend of Rs 90 per share.
Shares of Maruti Suzuki are fluctuating between gains and losses, currently trading 0.3 percent higher at Rs 8,495.
