Maruti Suzuki Q1 Profit Up Despite Weak Sales; Co To Get Into Fleet Management

Maruti Suzuki India Ltd. on Thursday reported a 2% rise in net profit to ₹3,712 crore for the June quarter, compared with ₹3,650 crore a year ago, aided by higher exports.

Revenue grew 8% on year to ₹38,414 crore, even as domestic passenger vehicle sales fell 4.5% due to weak demand. Exports surged 37.4%, helping overall sales volume inch up 1.1% to 527,861 units.

The company’s operating EBITDA dropped 11.2% on year to ₹3,997 crore, and the margin narrowed to 10.4% from 12.7% in the year-ago quarter.

In other news, the company has amended its memorandum of association to expand its operations beyond vehicle manufacturing, the company said in an exchange filing Thursday.

The revised MoA allows the automaker to enter new areas including multi-modal mobility, integrated fleet management, vehicle leasing, subscription-based mobility, EV charging, logistics, hydrogen and biogas operations, and end-of-life vehicle recycling. It will also offer R&D, consulting, and advisory services in design, engineering, and carbon trading.

The amendment enables Maruti Suzuki to make and deal in drones, UAVs, UAS, and their related technologies. The company can now set up testing, certification, and training centres, as well as facilities for scrapping and recycling used vehicles. It already operates a scrappage JV with Toyota Tsusho in Noida.

These changes are subject to shareholder approval at the company’s AGM on August 28.