Maruti Suzuki Profit Dips 4.4%, Revenue Rises 6% in Q4 FY25
Maruti Suzuki India, the largest automaker in the country, has reported a decline in its net profit for the fourth quarter (Q4) of FY25. According to the company’s latest financial results, Maruti Suzuki’s net profit decreased by 4.4% year-on-year (YoY) to ₹3,711 crore in Q4 of FY25. This marks a significant drop from the ₹3,877 crore net profit reported in the same quarter of FY24.
On the other hand, Maruti Suzuki’s revenue from operations rose 6% YoY to ₹40,674 crore in Q4 of FY25. This is a notable increase from the ₹38,234 crore revenue reported in the same quarter of FY24.
The company’s expenses, however, remained relatively stable, standing at ₹37,328 crore in Q4 of FY25. This indicates that Maruti Suzuki’s cost of operations has not increased significantly, which could have potentially mitigated the impact of the decline in net profit.
Despite the decline in net profit, Maruti Suzuki has declared a dividend of ₹135 per share for the quarter, which is in line with the company’s commitment to rewarding its shareholders.
The decline in net profit can be attributed to several factors, including the ongoing challenges in the automotive industry, such as supply chain disruptions, rising raw material costs, and intense competition. Additionally, the company’s decision to focus on higher-margin products and phases out lower-margin ones may have also affected its profitability.
However, Maruti Suzuki’s revenue growth is a positive sign, indicating that the company is able to generate more revenue from its existing operations. This could be attributed to the company’s efforts to increase its market share, improve its product mix, and enhance its operational efficiency.
In terms of sales, Maruti Suzuki sold 1,41,441 units in Q4 of FY25, a decrease of 10.6% YoY from the 1,58,441 units sold in the same quarter of FY24. This decline in sales could be attributed to the ongoing semiconductor shortage and supply chain disruptions, which have affected the company’s production capacity.
Despite the challenges, Maruti Suzuki remains optimistic about its future prospects. The company has announced plans to launch several new products in the coming months, including the all-new Baleno and the updated Celerio. These new products are expected to help the company regain its market share and improve its profitability.
In conclusion, Maruti Suzuki’s Q4 FY25 results indicate a mixed bag of performance. While the company’s net profit has declined, its revenue has increased, and its expenses remain relatively stable. The company’s decision to focus on higher-margin products and phase out lower-margin ones could have affected its profitability, but the revenue growth is a positive sign.
As the company continues to navigate the challenges in the automotive industry, it is likely to focus on improving its operational efficiency, enhancing its product offerings, and expanding its market share. With its strong brand presence and market leadership, Maruti Suzuki is well-positioned to recover from the current challenges and emerge stronger in the future.
