Q1 2025 Maruti Suzuki India Ltd Earnings Call Transcript
Key Points
- Maruti Suzuki India Ltd (BOM:532500) commissioned an additional vehicle assembly line at its Manesar facility, increasing its manufacturing capacity to 900,000 vehicles per annum.
- The company launched the fourth generation Epic New Swift, which has received overwhelming consumer acceptance.
- Maruti Suzuki India Ltd (BOM:532500) achieved a significant milestone by setting up over 3,000 Arena sales outlets and over 5,000 service touch points.
- The company is accelerating its efforts to increase the share of sustainable and renewable energy across its operations, with a target to scale its captive solar capacity to 78.2 megawatts peak by FY24-25.
- The company sold a total of 521,868 vehicles during the quarter, a 4.8% increase compared to the same period the previous year, with export sales growing by 11.6%.
- The demand for passenger vehicles in the domestic market was muted due to the heat wave and elections, which kept potential customers away from showrooms.
- The company had to increase its discount offerings to attract customers, which impacted margins.
- Despite the increase in sales, the volume has sequentially reduced by 10.5%, leading to a negative impact of operating leverage to the tune of 80 basis points.
- Employee costs increased due to wage hikes and seasonality, contributing to a 30 basis points increase in expenses.
- The company faces challenges in maintaining its margins due to fluctuating commodity prices and foreign exchange rates.
Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings conference call of Maruti Suzuki India Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Pranav Ambaprasad. Thank you, and over to you sir.
Thank you, Dorwin. Ladies and gentlemen, good afternoon once again. Welcome you all to the Q1 FY25 earnings call. May I introduce you to the management team from Maruti Suzuki. Today we have with us our Chief Investor Relations Officer, Mr. Rahul Bharti; and CFO, Mr. Arnab Roy.
Before we begin, may I remind you of the Safe Harbor. We may be making some forward-looking statements that have to be understood in conjunction with the uncertainty and the risks that the company faces. I also like to inform you that the call is being recorded and the audio recording and the transcript will be available at our website.
May please note that in case of any inadvertent error during
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