Pune: Maruti Suzuki, India’s biggest car maker, on Tuesday posted a 17.5 per cent on-year decline in net profit for Q2 FY25, falling to Rs 3,103 crore, on account of a decline in volumes and demand slowdown.
The maker of popular models Baleno and Dzire had clocked Rs 3,786 crore net profit in the same quarter last year.
Net profit for the quarter declined due to a provision of Rs 837.6 crore resulting from the withdrawal of indexation benefit and change in tax rate on long term capital gains on debt mutual funds as per the Finance Act 2024. The company had earlier intimated this impact to the stock exchanges in August 2024.
Maruti share price fell as much as 6 per cent, the steepest in nearly two years. The stock was trading at Rs 10,800 on NSE after the weak earnings report.
Its July-September revenues rose marginally by 0.3 per cent on-year to Rs 37,449 crore.
The automaker faced a rather challenging domestic market, where volumes fell 3.9 per cent to 4.64 lakh units during the quarter under review.
However, export volumes improved, rising 12.1 per cent to 77,716 units, showing resilience in international demand.
Profit before tax (PBT) rose by 6.3 per cent on-year to Rs 5,100 crore, marking the company’s highest-ever PBT.
Maruti’s board provided an in-principle approval for the amalgamation of Suzuki Motor Gujarat Private Limited (SMG) with MSIL, effective from 1 April 2025, pending regulatory approvals.
SMG, which became a 100 per cent subsidiary last year of Maruti Suzuki India, is expected to streamline operations under it.
