Maruti Suzuki India Limited announces robust performance in its financial results for the fiscal year ending March 31, 2024. The brand sold a total of 2,135,323 vehicles through FY2023-24, marking an 8.6% increase over the previous fiscal year. This splits as 1,852,256 units in the domestic market and 283,067 units in exports, making it the country’s top exporter third year in a row.
Net sales picked up to INR 1,349,378 million, which is up 19.9% from INR 1,125,008 million in the last financial year. This is a net profit increase of 64% at INR 132,094 million, up from the previous year's INR 80,492 million. This performance is attributed to higher sales volume, beneficial commodity prices, rigorous cost reduction efforts, and increased non-operating income.
The final quarter of FY2023-24 also reflected strong performance, with vehicle sales totalling 584,031 units, a 13.4% increase compared to the same period last year. There is a 21.7% increase in exports, which is a notable uptick in growth. Maruti Suzuki's Board of Directors has recommended the highest-ever dividend of INR 125 per share which is an increase from the INR 90 per share distributed in the last fiscal year. This expresses Maruti’s strong cash flow and optimistic future outlook for the Indian market.
R.C. Bhargava, Chairman of Maruti Suzuki India, expressed his satisfaction with the year’s performance. 'This fiscal year has been phenomenal across all parameters – highest sales, exports, turnover, and profits. Our strategic initiatives and operational efficiency have significantly contributed to this success,' he stated during the annual financial results meeting.
He further highlighted the role of innovative practices and internal suggestions that have led to remarkable operational improvements and cost efficiencies. “For the first time, our plants in Gurgaon and Manesar have implemented over 1 million suggestions for operational improvement, a milestone that reflects our commitment to continuous improvement and operational excellence,” Bhargava added. He further mentioned that as the company is due to release its BEV models by 2025, plug-in hybrids is an interesting segment that will be discussed with Suzuki Japan.
Looking ahead, Maruti Suzuki is optimistic about sustaining its growth trajectory with further expansions and enhancements. This will include inclusion of standard six-airbags in a few models and modifications to bumper designs to enhance pedestrian safety. As for the Bharat-NCAP results for a few models that were sent voluntarily, the results are still awaited with a positive expectation. The company's expansion plan at Kharkhoda is another development that will help boost manufacturing capabilities thus improving sales. “Smaller dealer inventories are not customer-centric”, he added. This expansion will play a critical role in increasing the company's manufacturing capacity and supporting its future growth initiatives.
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