Maruti Suzuki Q4 Results:
Net Profit Falls 4.3% YoY to Rs 3,711 Crore; Announces Rs 135 Dividend
Maruti Suzuki India Ltd, the largest player in India’s four-wheeler market, has announced its financial results for Q4 of FY25, revealing a 4.3% decline in its standalone net profit, which stood at Rs 3,711 crore. This figure came in below analysts’ expectations, which had anticipated a smaller dip in profit of around 1%. In comparison, Maruti Suzuki had posted a net profit of Rs 3,852 crore for the same period the previous year, marking a notable decrease. The company had also witnessed a decline in its operating profit, reflecting some operational pressures, particularly in areas related to rising costs and a competitive automotive market. Despite these challenges, the automobile giant declared a final dividend of Rs 135 per share for FY25, signaling its commitment to rewarding shareholders, though the market response was muted, with a dip in its share price following the earnings release.
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Net profit: Rs 3,711 crore (down 4.3% YoY)
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Street expectations: Rs 3,852 crore (down 1% YoY)
The dividend declaration, amounting to Rs 135 per share, reflects Maruti Suzuki’s effort to maintain shareholder confidence, despite the mixed financial results.
Revenue Growth in Q4 FY25
In terms of revenue, Maruti Suzuki showed a positive trend, with its revenue from operations rising by 6.4% year-on-year, reaching Rs 40,674 crore in Q4 FY25, up from Rs 38,235 crore in the same quarter of the previous fiscal year. This growth in revenue was primarily driven by increased sales volume and higher demand across several vehicle segments, despite the overall industry challenges. However, the company’s operational performance did not match up to the revenue growth, with a notable decrease in EBITDA (earnings before interest, tax, depreciation, and amortization). EBITDA fell by 9%, dropping to Rs 4,264 crore from Rs 4,685 crore in Q4 FY24.
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Revenue growth: 6.4% YoY
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Revenue: Rs 40,674 crore
This decrease in EBITDA is partly attributed to higher advertising spending and promotional discounts, which impacted the company’s margin structure. Maruti Suzuki’s EBITDA margin also saw a contraction, shrinking by 150 basis points to 10.5% in Q4 FY25 from 12.3% in Q4 FY24. Analysts had anticipated margin pressures given the increased spending on advertising and discounts, which are often used to maintain a competitive edge in a market with shifting consumer preferences.
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EBITDA: Rs 4,264 crore (down 9% YoY)
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EBITDA margin: 10.5% (down 150 bps from 12.3% in Q4 FY24)
Despite these operational hurdles, the overall revenue performance indicated the continued strength of the company in India’s automotive sector.
Maruti Suzuki’s Annual Performance and Export Leadership
On a more positive note, Maruti Suzuki has set new records in both domestic and international markets for FY25. The company reported its highest-ever annual sales and exports, further solidifying its position as India’s top car exporter. Maruti Suzuki has been the leader in passenger vehicle exports from India for the fourth consecutive year, contributing to nearly 43% of the total passenger vehicle exports from the country. This highlights the company’s ongoing dominance in both domestic and international markets, driven by an expansive product range and strong demand across various international markets.
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Total units sold in Q4: 604,635 units (highest-ever quarterly sales)
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Domestic sales growth: 2.8%
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Export growth: 8.1%
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Total sales growth: 3.5%
In terms of sales, Maruti Suzuki experienced a balanced growth trajectory, with domestic sales increasing by 2.8% and exports rising by 8.1%. Overall, the company achieved a 3.5% increase in total sales during the quarter. The company noted that while the domestic market growth remained subdued in FY25, the robust export performance helped maintain a healthy overall growth rate. Maruti Suzuki’s export leadership continues to be a key differentiator, helping it mitigate challenges in the domestic market.
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Domestic sales for FY25: 519,546 units
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Export sales for FY25: 85,089 units
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Domestic growth: 2.7% YoY
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Export growth: 17.5% YoY
Stock Performance Post Results
Despite the record-breaking annual sales and continued success in export markets, Maruti Suzuki’s share price has seen a decline following the announcement of its Q4 results. The company’s shares were trading at Rs 11,771 on the NSE, which marked a drop of more than 1% from the previous close. This reaction reflects the market’s disappointment with the company’s profit figures and margin contraction, despite the positive revenue and export numbers. The slight decline in share price also mirrors the cautious sentiment around the automotive sector, where investor expectations for growth have been tempered by margin pressure and higher operational costs.
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Share price post-results: Rs 11,771 (down 1% from previous close)
