Indiaโs leading automaker Maruti Suzuki India Ltd. (MSIL), on Tuesday, reported an 18% decline in its net profit for the second quarter of the ongoing financial year at Rs 3,103 crore.
On the other hand, the companyโs revenue from operations for the July-September quarter grew 0.3% year-on-year to Rs 37,449 crore from Rs 37,062 crore in the same quarter last year.
The fall in profit affected Maruti Suzukiโs stock price which declined 4.16% on NSE on Tuesdayโs close.
To be sure, the primary hit to the companyโs quarterly profit stemmed from a deferred tax liability amounting to Rs 1,018 crore. The tax liability partly arose due to regulatory changes that affected indexation benefits and tax rates on capital gains from debt mutual funds, a factor the company had previously disclosed in August.
Apart from tax impacts, the companyโs poor results pointed towards a broader slowdown in the auto market, with domestic volumes declining by 3.9% to 4.64 lakh units for the quarter ending September 30.
However, export volumes have remained strong on sustained demand in international markets. The companyโs export grew 12.1% in the quarter to 77,716 units.
On the operational front, Maruti Suzukiโs profit before tax (PBT) saw a 6.3% year-on-year increase, reaching Rs 5,100 croreโa record high for the company.
Additionally, the board granted in-principle approval for the merger of Suzuki Motor Gujarat Private Limited (SMG) with MSIL, effective April 1, 2025, pending regulatory clearances.
The merger is aimed at consolidating operations under MSILโs management, following SMG becoming a full subsidiary last year.
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
For the first half of FY25, Maruti Suzuki reported total sales of 10.63 lakh units, with 9.15 lakh in the domestic market and 1.48 lakh exported.