Demand for SUVs drives Maruti earnings up 47%

The consolidated net profits of Maruti Suzuki India (MSIL) increased by 47.1 per cent year-on-year (Y-o-Y) to ₹3,952.3 crore in the fourth quarter of 2023-24 due to a jump in production, no constraints in supply chains, cost savings, and rising demand for sport utility vehicles (SUVs).

- DEEPAK PATEL

The firm's consolidated annual net profits for 2023-24 surged to 13,488.2 crore, marking a 63.2 per cent Y-o-Y increase.

Consequently, MSIL announced its decision to issue a dividend of ₹125 per share for 2023-24, an increase from the ₹90 per share dividend issued for 2022-23.

MSIL Chairman R C Bhargava told reporters the construction of Kharkhoda plant was progressing smoothly, with its first line slated to commence production before March 2025.

"We will add a production line at the Kharkhoda plant every 12 months," he added.

Bhargava further stated the company was yet to finalise the location of its new plant in Gujarat due to the model code of conduct (MCC) being in force following the announcement of the Lok Sabha elections in the country.

Currently, MSIL boasts an annual production capacity of 2.35 million units, with plans to ramp it up to 4 million units by 2030-31.

Bhargava said a rebound in the small-car market was not going to happen this or next calendar year.