October 29, 2024
New Delhi, India
Maruti Suzuki Q2 Results
Maruti Suzuki India Ltd (MSIL) reported a challenging Q2 FY25, with net profit falling 18% year-on-year to ₹3,103 crore, missing market expectations. Analysts had forecasted a flat profit at ₹3,791 crore, according to a Moneycontrol poll of eight brokerages. The automaker’s revenue from operations showed a marginal increase of 0.3% to ₹37,449 crore, slightly surpassing the ₹37,128 crore estimate.
Key Financial Highlights
- Net Profit: Fell 18% to ₹3,103 crore, missing estimates.
- Revenue: Marginally up by 0.3% to ₹37,449 crore.
- Stock Reaction: Shares dropped 4.2%, trading at ₹11,000.
The company’s stock took a sharp dip post-earnings, reflecting investor disappointment over the earnings miss.
Factors Impacting Q2 Performance
Maruti Suzuki’s Q2 performance was hampered by a deferred tax liability of ₹1,018 crore, mainly due to regulatory changes affecting indexation benefits and capital gains tax rates on debt mutual funds. This tax impact, announced by the company in August, compounded a broader decline in demand and volume pressures.
- Domestic Market: Volumes fell 3.9% to 4.64 lakh units for the quarter ended September 30, reflecting softening demand.
- Exports: Countering domestic pressures, exports saw a rise of 12.1%, reaching 77,716 units, indicating robust international demand.
Record Profit Before Tax and Upcoming Merger
Despite challenges, Maruti Suzuki reported its highest-ever Profit Before Tax (PBT) at ₹5,100 crore, marking a 6.3% year-on-year growth.
The automaker’s board also approved, in principle, the merger of Suzuki Motor Gujarat Private Limited (SMG) with MSIL, expected to take effect from April 1, 2025, pending regulatory clearance. SMG, which became a fully-owned subsidiary last year, is anticipated to enhance operational efficiency under MSIL’s management.
H1 FY25 Sales Performance
For the first half of FY25, Maruti Suzuki recorded total sales of 10.63 lakh units, with 9.15 lakh units sold in the domestic market and 1.48 lakh units in exports.
Latest Q2 Results
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