Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is India’s leading passenger car manufacturer, recognized for revolutionizing the Indian automobile industry. Initially starting with the iconic Maruti 800, the company now offers a diverse range of 16 car models and over 150 variants, catering to various segments from entry-level cars like Alto 800 and Alto K10 to premium models like the Ciaz sedan. Additionally, Maruti Suzuki is involved in pre-owned car sales, fleet management, and car financing. The company operates manufacturing plants in Gurgaon and Manesar, Haryana, and boasts a state-of-the-art R&D facility in Rohtak. Originally known as Maruti Udyog Limited, the company was incorporated in February 1981 as a joint venture between the Government of India and Suzuki Motor Corporation.
| Result Analysis: Maruti Suzuki India Limited (MSIL) (CMP: Rs. 11,510) | Result Update: Q3FY25 |
| Stock Details | |
| Market Cap. (Cr.) | 3,61,863 |
| Equity (Cr.) | 157.20 |
| Face Value | 5 |
| 52 Wk. high/low | 13,680/10,725 |
| BSE Code | 532500 |
| NSE Code | MARUTI |
| Book Value (Rs) | 2835 |
| Sector | Automobiles – Passenger Cars |
| Key Ratios | |
| D/E | 0.01 |
| ROE (%): | 16.84 |
| ROCE (%): | 21.03 |
| TTM EPS: | 462.51 |
| P/BV: | 4.1 |
| TTM P/E: | 25.11 |
Result Highlights:
- In Q3 FY’25, the company reported a revenue from operation of INR 36,805.10 crore, marking a significant growth of 15.6% compared to INR 31,844.70 crore in Q3 FY’24. On a QoQ basis, this was an increase of 3.42% from INR 35,586.50 crore in Q2 FY’25. The profit after tax reached INR 3,726.90 crore, which is a 16.2% increase YoY from INR 3,206.80 crore in Q3 FY’24 and a 20.12% growth from INR 3,102.50 crore in Q2 FY’25.
- The company’s EBITDA for Q3 FY’25 was INR 5,076.50 crore, reflecting a 14.3% YoY growth from INR 4,440 crore in Q3 FY’24. On a sequential basis, EBITDA increased by 1.55% from INR 4,998.80 crore in Q2 FY’25. The EBITDA margin for the quarter stood at 13.79%, slightly down from 13.94% in Q3 FY’24 and 14.05% in Q2 FY’25. This performance indicates consistent operational efficiency despite the minor dip in margin.
- In Q3 FY’25, the company achieved a sales volume of 566,213 units, marking a 4.6% increase compared to 541,550 units in Q2 FY’25. This growth highlights strong consumer demand and the company’s ability to capitalize on market opportunities, further strengthening its position in the competitive automotive sector.
- Rural markets are outperforming urban areas, with rural retail growth at 15% in Q3 compared to just 2.5% in urban areas. This trend highlights the resilience of rural demand, prompting Maruti Suzuki to continue refining its strategy to capitalize on this growth.
- The company sees EV exports as a key growth driver, with the Kharkhoda plant expected to begin operations in Q4 FY’25. This facility will support both local production and global demand, particularly in the electric vehicle segment, contributing to the company’s long-term EV strategy.
Financial Performance:
Shareholding Pattern:
| Particulars (In %) | Q3FY25 | Q3FY24 |
| Promoters Group | 58.28 | 58.19 |
| FIIs | 15.47 | 20.60 |
| DIIs | 22.89 | 17.64 |
| Government | 0.07 | 0.06 |
| Public and others | 3.28 | 3.50 |
Management Commentary:
- Maruti Suzuki anticipates a 3.5% retail growth for the first nine months of FY’25, with similar trends expected to continue into Q4. However, the company remains cautious about the demand outlook for FY’26, with limited visibility on growth. A consensus estimate for FY’26 will be discussed later, but the focus remains on managing current conditions.
- Discount levels slightly increased in Q3, averaging INR 31,000 per vehicle, up from INR 29,300 in Q2. Despite some cost fluctuations, no significant non-recurring costs are expected for Q4, and the overall impact on margins from discounting and cost changes is anticipated to balance out
- In response to rising costs, Maruti Suzuki has implemented a modest price hike of 30 basis points for Q4 FY’25. The company will continue to adjust prices as needed, ensuring minimal customer impact while managing inflationary pressures and production cost increases.
Outlook:
Maruti Suzuki India Limited (MSIL) is well-positioned for sustained growth, with strong performance in rural markets and a diverse product portfolio. Q3 FY’25 results show increased revenues, profit, and sales volumes, highlighting operational efficiency. The upcoming Kharkhoda plant, focusing on electric vehicles (EVs), presents a promising growth avenue. While MSIL expects moderate retail growth for FY’25 and remains cautious for FY’26, strategic pricing and cost management will help maintain margins. Investors can anticipate steady growth, driven by MSIL’s leadership in the Indian market and expanding EV production, though market uncertainties for FY’26 warrant cautious optimism.
Results:
| Particulars (In Cr) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ% | YoY % | FY24 | FY23 | YoY % |
| Sales | 36805.1 | 35586.5 | 31844.7 | 3.4 | 15.6 | 134921.7 | 112493.7 | 19.9 |
| Other Operating Income | 1959.2 | 1862.7 | 1668.1 | 5.2 | 17.5 | 6936.5 | 5916.2 | 17.2 |
| Other Income | 1124.8 | 1570.5 | 1052.9 | -28.4 | 6.8 | 4347.6 | 2442.1 | 78.0 |
| Total Income | 39889.1 | 39019.7 | 34565.7 | 2.2 | 15.4 | 146205.8 | 120852 | 21.0 |
| Total Expenditure | 33687.8 | 32450.4 | 29072.8 | 3.8 | 15.9 | 123331.9 | 105315.5 | 17.1 |
| EBIDT | 6201.3 | 6569.3 | 5492.9 | -5.6 | 12.9 | 22873.9 | 15536.5 | 47.2 |
| Interest | 46.3 | 43 | 35.8 | 7.7 | 29.3 | 193.6 | 252.3 | -23.3 |
| EBDT | 6155 | 6526.3 | 5457.1 | -5.7 | 12.8 | 22680.3 | 15284.2 | 48.4 |
| Depreciation | 1429 | 1385.7 | 1301.5 | 3.1 | 9.8 | 5255.8 | 4846 | 8.5 |
| EBT | 4726 | 5140.6 | 4155.6 | -8.1 | 13.7 | 17424.5 | 10438.2 | 66.9 |
| Tax | 999.1 | 2038.1 | 948.8 | -51.0 | 5.3 | 3936.3 | 2174.5 | 81.0 |
| PAT | 3726.9 | 3102.5 | 3206.8 | 20.1 | 16.2 | 13488.2 | 8263.7 | 63.2 |
| EPS | 474.16 | 394.72 | 407.99 | 20.1 | 16.2 | 429.01 | 262.84 | 63.2 |
Segment Result:
| Particulars (In Cr) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ% | YoY% |
| Commercial Vehicle | 10423.93 | 9980.94 | 9853.52 | 4.4 | 5.8 |
| Financial Services | 1571.31 | 1467.05 | 1212.21 | 7.1 | 29.6 |
Sales Volumes:
| Market | Q3FY25 | Q2FY25 | Q3FY24 | QoQ% | YoY% |
| Domestic | 466993 | 463834 | 429422 | 0.68106 | 8.749202 |
| Exports | 99220 | 77716 | 71785 | 27.67 | 38.21829 |
Segment Sales Volumes:
| Domestic Market | Q3FY25 | Q2FY25 | Q3FY24 | QoQ% | YoY% |
| Mini | 27855 | 30971 | 27084 | -10.1 | 2.8 |
| Compact | 182227 | 177213 | 191082 | 2.8 | -4.6 |
| Mini+Compact | 210082 | 208184 | – | 0.9 | – |
| Mid-Size | 1720 | 1972 | 1462 | -12.8 | 17.6 |
| Uvs | 185298 | 180535 | 154120 | 2.6 | 20.2 |
| Vans | 33920 | 34809 | 33235 | -2.6 | 2.1 |
| LCV | 8871 | 8485 | 8117 | 4.5 | 9.3 |
| Sales to other OEM | 27102 | 29849 | 14322 | -9.2 | 89.2 |
Source: Company website, EWL Research
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