13 out of 15 Nifty Auto companies delivered growth in net profit in March quarter; details here

On the flip side, Balkrishna Industries and Bharat Forge were the only two companies in the Nifty Auto index that registered negative net profit growth during the March quarter.

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In the latest March quarter, the majority of Nifty Auto companies showcased a remarkable performance, with 13 out of 15 companies in the index, reporting positive net profit growth. This remarkable achievement can be attributed to several key factors.

Firstly, there was a significant rebound in domestic sales, indicating a revival in consumer demand. Additionally, the decline in commodity prices, particularly steel and aluminium, helped alleviate cost pressures for these companies. Adding to this, the easing of supply chain disruptions played a crucial role in improving operational efficiency.

Another contributing factor was the rise in replacement demand, coupled with the availability of ample financing options.

During the quarter, Tata Motors achieved its highest-ever revenue of ₹1,05,932 crore, indicating a remarkable YoY increase of 35% and a QoQ increase of 19.71%.

After experiencing seven consecutive quarters of losses, the global automobile manufacturer successfully turned the tide in Q3 FY23 by achieving a net profit of ₹2,957 crore.

Building on this momentum, the company delivered an even more impressive performance in Q4, posting a net profit of ₹5,408 crore, a significant improvement compared to a net loss of ₹1,032.84 crore in Q4FY22.

The country's largest automaker, Maruti Suzuki, posted a 42% YoY jump in its consolidated net profit to ₹2,671 crore for the fourth quarter ended March 2023. The company's robust performance was driven by higher sales, improved realisation, a better product mix, and favourable forex movement.

The auto major had reported a profit of ₹1,876 crore in the same quarter last year. Its revenues during the quarter grew by 20% YoY to ₹32,060 crore.

Similarly, Mahindra & Mahindra reported an 18% jump in consolidated profit for the March quarter and the highest-ever annual profit of ₹10,282 crore in FY23.

The company's revenue from operations during the quarter jumped to ₹32,366 crore, as compared to ₹25,934 crore in the year-ago period.

While, two-wheeler majors also displayed solid performance riding on strong domestic sales.

Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, reported a 37% rise in net profit to ₹859 crore compared to ₹627 crore registered in Q4 FY22.

On similar lines, TVS Motor Company, Eicher Motors, and Bajaj Auto reported an increase in their net profit ranging from 2% to 50% during the fourth quarter of FY23.

In the auto ancillary space, Samvardhana Motherson International experienced a remarkable increase of 436% in its Q4 profit, reaching ₹654 crore, aided by robust sales.

Sona BLW Precision Forgings registered its highest-ever growth in revenue of ₹744 crore in Q4, up 35% YoY. The company recorded a net profit of ₹120 crore, achieving a profit margin of 15%.

Tube Investments of India, on the other hand, also reported a robust 84.55% YoY increase in net profit to ₹251 crore, ending FY23 with a net profit of ₹665 crore, an increase of 40%.

Tyre major, Madras Rubber Factory (MRF), delivered stellar numbers for the March quarter, with its consolidated net profit growing by 106% YoY to ₹341 crore as compared to a net profit of ₹165 crore in the corresponding quarter of the last fiscal year, driven by lower RM costs.

Commercial vehicle maker Ashok Leyland reported an over five-fold jump in consolidated net profit at ₹802.71 crore in Q4. Its revenue from operations during the quarter stood at ₹13,202.55 crore as against ₹9,926.97 crore in the year-ago period.

On the flip side, Balkrishna Industries and Bharat Forge were the only two companies in the Nifty Auto index that registered negative net profit growth during the March quarter.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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