Maruti Suzuki Achieves Record Revenue Amid Profit Decline
Maruti Suzuki revenue tops Rs 50,000 crore, net profit slips
The Economic TimesImage: The Economic Times
Maruti Suzuki, India's largest carmaker, reported a record quarterly net sales of ₹50,078.70 crore for January-March 2023, a 29% increase year-on-year. However, net profit fell 7% to ₹3,590.5 crore, impacted by rising commodity costs. The company anticipates sustained growth driven by increased demand for small cars following GST cuts.
- 01Maruti Suzuki's quarterly net sales surpassed ₹50,000 crore for the first time.
- 02Net profit declined by 7% due to higher commodity costs.
- 03The company recorded its highest-ever quarterly sales of 676,209 units.
- 04Maruti Suzuki plans to invest ₹14,000 crore to expand production capacity.
- 05The introduction of new products in different GST segments is planned to meet diverse customer needs.
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Maruti Suzuki, based in New Delhi, reported record quarterly net sales of ₹50,078.70 crore for the January-March 2023 period, marking a 29% increase from ₹38,839.1 crore in the same quarter last year. Despite this impressive sales growth, the company's net profit fell by 7% to ₹3,590.5 crore, primarily due to rising commodity costs and mark-to-market impacts. Analysts had anticipated a profit growth of 10% to ₹4,086 crore. The company achieved an all-time high operating profit of ₹4,409.2 crore, reflecting a 30% year-on-year increase. Maruti Suzuki sold a record 676,209 units, with domestic sales reaching 538,994 units and exports hitting an all-time high of 137,215 units. The chairman, R C Bhargava, noted that production capacity limitations resulted in approximately 190,000 pending customer orders. To address this, Maruti Suzuki has allocated ₹14,000 crore for capacity expansion in Haryana and Gujarat, aiming to add 500,000 units of production capacity. The company plans to introduce new products across various GST segments to cater to a diverse customer base. Despite concerns over rising commodity costs due to geopolitical tensions, Maruti Suzuki does not foresee major disruptions in operations.
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The increase in production capacity and sales could lead to more job opportunities and better vehicle availability for consumers, particularly in the small car segment.
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