Maruti Suzuki India Ltd (BOM:532500) Q3 2025 Earnings Call Highlights: Record Sales and Export ...
Net Sales: INR368 billion in Q3 FY25, up from INR318.6 billion in the same period previous year.
Net Profit: INR35.25 billion in Q3 FY25, a 12.6% increase over INR31.3 billion in Q3 FY24.
Operating Profit Margin (EBIT): 10% of net sales in Q3 FY25, down from 10.3% in Q2 FY25.
Sales Volume: 566,213 vehicles sold in Q3 FY25, with 466,993 in the domestic market and 99,220 exported.
Export Growth: 38% increase in export sales, highest ever in any quarter.
Domestic Sales Growth: 8.7% growth over the same period previous year.
Retail Sales Growth: Cumulative growth of 3.5% in the first nine months of FY25 over the same period previous year.
Net Sales (Nine Months): INR1,063 billion, compared to INR982 billion in the same period previous year.
Net Profit (Nine Months): INR102.4 billion, compared to INR93.3 billion in the same period previous year.
Warning! GuruFocus has detected 1 Warning Sign with BOM:532500.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Maruti Suzuki India Ltd (BOM:532500) unveiled its first electric SUV, the e Vitara, which offers a range of over 500 kilometers on a single charge and includes advanced safety features.
The company achieved its highest-ever net sales of INR368 billion in Q3 FY25, marking a significant increase from the previous year.
Maruti Suzuki India Ltd (BOM:532500) exported 99,220 vehicles in Q3, the highest ever for any quarter, with a 38% growth in export sales.
The all-new Dzire model has been well-received, with a significant increase in bookings for its top variants, indicating strong consumer interest.
The company maintained a dominant 49% share of India's total passenger vehicle exports in Q3 FY25, showcasing its strong export performance.
Operating profit margin decreased to 10% in Q3 from 10.3% in Q2, affected by higher sales promotion expenses and adverse foreign exchange movements.
The demand scenario remains subdued and weak, with only a 3.5% growth in retail sales expected to continue into the fourth quarter.
Discount levels remained high despite low inventory levels, indicating potential challenges in pricing strategy.
The profitability of electric vehicles (EVs) is not expected to match that of internal combustion engine (ICE) vehicles for a long time, due to higher costs associated with EVs.
The entry-level hatchback segment experienced a decline, with only the premium hatch segment showing some growth, highlighting challenges in the lower market segments.
Q: Could you provide insights on the demand environment and growth outlook for fiscal '26? A: In the first nine months, we achieved about 3.5% growth at the retail level. We expect this trend to continue in the fourth quarter. However, the demand scenario remains subdued and weak, which is a reality we must contend with for some time. The industry will meet in February to estimate growth for the next fiscal year.
Q: Can you elaborate on the margin changes and any non-recurring costs in Q3? A: The discount for the quarter was approximately INR31,000, similar to the last quarter. There were some one-off costs related to ads and the Dzire launch, but nothing significant is expected to reverse in Q4. We recently announced a small price hike of about 30 basis points on net sales to cover inflationary pressures.
Q: How is the rural versus urban demand trend, and what are the growth figures? A: Rural demand continues to outperform urban, with rural growth at about 15% and urban at 2.5% in Q3. This led to an aggregate retail growth of about 8.3% in the third quarter.
Q: What is the outlook for EV exports, and will the e Vitara be a major export model? A: We plan to export the e Vitara to about 100 countries, making it a significant volume driver. However, predicting exact volumes is challenging due to the dynamic nature of the EV market globally. We aim to maximize our volumes.
Q: Can you discuss the profitability of EVs compared to ICE vehicles and the efforts to reduce costs? A: Achieving profitability parity between EVs and ICE vehicles is a long-term goal. Government support through subsidies indicates the current cost disparity. Our focus is on minimizing costs while ensuring high range and specs for customer confidence. Cost reduction is key, but it will take time to match ICE profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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