Maruti Suzuki profit soars on chip supply relief, cost savings

Maruti Suzuki India Ltd reported an 80% surge in quarterly profit, beating analysts' estimates, as the country's largest carmaker benefited from improved semiconductor supply, leading to higher car sales, and cost savings due to cooling raw material prices.

- Alisha Sachdev

Net profit rose to ₹3,716.5 crore for the quarter ended 30 September from ₹ 2,061.5 crore in the year earlier, the company said on Friday. Analysts polled by Bloomberg expected the company to report a 3,040 crore profit for the quarter.

The carmaker's performance also received a boost from its cost-reduction programmes. Maruti sold 1.05 million units during the first half of the fiscal year for the first time, setting it on course to achieve 2 million units in sales for the full fiscal year.

Shares of Maruti Suzuki rose to a record ₹ 10,803.5 on BSE in response to the company's robust financial performance before settling 1.2% higher at ₹10,552.9 on a day the broader BSE Sensex climbed 1%.

Standalone revenue rose 29% to 137,062.1 crore for the September quarter from ₹29,930.8 crore a year earlier. Earnings before interests and taxes (EBIT) per vehicle improved by 83% to a record ₹72,277 during this period.