Maruti Suzuki hosted a conference call on March 26, 2024. In the conference call, the company was represented by Mr Arnab Roy-CFO.

Key takeaways of the call

The Company surpassed annual total sales milestone of 2 million units in FY24. The Company continued to be the top exporter for the third consecutive year, now contributing 41.8% of total passenger vehicle exports from India.

The Company’s margins improved owning to higher sales volume, favorable commodity prices, cost reduction efforts and higher non-operating income.

The company reported its highest ever unit sales, net sales, and net profit both for the quarter and the financial year.

In Q4 FY24, company sold total of 5,84,031 vehicles, up 13.4% YoY. Sales volume in the domestic market stood at 505,291 units, up 12.2% YoY. The sales volume in the export market was at 78,740 units, registering a growth of 21.7% YoY.

In FY24, Company sold a total of 21,35,323 units registering a growth of 8.6% YoY. During the same period, Sales volume in the domestic market increased 8.5% YoY to 1,852,256 units and exports sales increased 9.2% YoY to 283,067 units.

In Q4 FY24, the company’s capacity utilization improved.

Management indicated that Interest in green vehicles increased significantly during the year. The company reported that its share of hybrid vehicles increased to 2%. The company is also witnessing good traction in CNG vehicles.

Management indicated that rural demand is also improving.

The company commissioned another vehicle assembly line at its Manesar on 9th April 2024. This assembly line has been added to the existing Plant-A of the 3 manufacturing plants at Manesar. The new vehicle assembly line has the capability to manufacture 100,000 units per annum. With this additional assembly line, the total manufacturing capability at Manesar stands at 900,000 vehicles per annum.

The company is working towards having six airbags as standard on some models.

Company achieved highest ever dispatches through railways to about 450,000 units.

In Q4 FY24, mini+ compact sales decreased 8.4% YoY, mid-size sales decreased 31.5% YoY, UVs sales increased 71.5%, Vans sales grew 3.2%, LCV sales fell 11% and sales to other OEMs increased 36.7%.

In Q4 FY24, mini+ compact sales contributed 51.5% of total sales, mid-size sales 0.3%, UVs sales 36%, Vans 7.2%, LCV 2% and sales to other OEMs 3%.

In FY24, mini+ compact sales decreased 11.5% YoY, mid-size sales decreased 24% YoY, UVs sales increased 75.4%, Vans sales grew 4.5%, LCV sales fell 11.2% and sales to other OEMs decreased 5.4%.

In FY24, mini+ compact sales contributed 52.4% of total sales, mid-size sales 0.6%, UVs sales 34.7%, Vans 7.4%, LCV 1.8% and sales to other OEMs 3.2%.

The Board recommended a final dividend of Rs 125 per share of nominal value Rs 5 per share for the financial year 2023-24.