Maruti Suzuki Q2 Results Key Highlights: Net profit falls 17% YoY to ₹3,069 crore, revenue flat; stock slides

Maruti Suzuki India, the largest passenger car manufacturer in India, on Tuesday reported a 17% year-on-year (YoY) fall in its net profit for the second quarter of FY25. The company's revenue remained flat amid a decline in domestic sales volumes and slowdown in demand.

The automobile major's operating performance for the quarter ended September 2024 also weakened, with its margin witnessing contraction.

Maruti Suzuki share price plunged after the company's Q2 results failed to impress the Street.

Here are key highlights from Maruti Suzuki Q2 Results:

Net Profit

Maruti Suzuki's net profit in Q2FY25 registered a fall of 17.4% to ₹3,069.2 crore from ₹3,716.5 crore in the same quarter last fiscal year.

Net profit for the quarter declined due to a provision of ₹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.

Revenue and Volumes

Maruti Suzuki’s revenue from operations in the July-September quarter increased marginally by 0.4% to ₹37,202.8 crore from ₹37,062.1 crore, year-on-year (YoY).

Maruti Suzuki sold a total of 541,550 vehicles during the September quarter, of which the domestic market volume was 463,834 vehicles and the export volume was 77,716 vehicles. While the domestic volume declined by 3.9%, the export volume grew by 12.1% compared to the same period of the previous year.

Operational Performance

At the operating level, the auto major’s earnings before interest, tax, depreciation and amortisation (EBITDA) during the quarter ended September fell 7.7% to ₹4,417 crore from ₹4,784 crore, while EBITDA margin compressed by 100 basis points (bps) to 11.9% from 12.9%, YoY.

Amalgamation of Suzuki Motor Gujarat

Maruti Suzuki has also announced that its board of directors has given its in-principle approval for the amalgamation of Suzuki Motor Gujarat Private Limited, a wholly owned subsidiary, with the Company.

Last year, Suzuki Motor Gujarat Pvt Ltd SMG was acquired to become a 100% subsidiary of Maruti Suzuki India.

“The Board considered the structure after the acquisition and gave its in-principle approval for the amalgamation of SMG with MSIL. The appointed date for the amalgamation is 1st April 2025, subject to all legal and regulatory compliances,” Maruti Suzuki said in a release.

At 1:40 pm, Maruti Suzuki shares were trading 5.05% lower at ₹10,902.40 apiece on the BSE.