NTI: Maruti Suzuki India Ltd reported an 18% decline in net profit year-on-year, totaling ₹3,102 crore for the quarter ending in September, compared to ₹3,786 crore in the same period last year.
This drop was primarily due to a provision of ₹837 crore, following the Finance Act 2024’s withdrawal of indexation benefits and a revised tax rate on long-term capital gains for debt mutual funds, the company explained in a statement. Maruti Suzuki had previously notified the stock exchanges of this impact on August 17, 2024.
Revenue from operations increased marginally by 0.3% year-on-year, reaching ₹37,449 crore in the second quarter.
The company sold a total of 541,550 vehicles in the quarter, with 463,834 units sold domestically and 77,716 units exported. Domestic sales volume saw a 3.9% decline, while export volume rose by 12.1% compared to the same period last year.
Net sales for the quarter stood at ₹35,589 crore, up slightly from ₹35,535 crore in the corresponding period of the previous year.
In the first half of FY25, Maruti Suzuki sold a total of 1,063,418 units, with domestic sales at 915,142 units and exports at 148,276 units. Domestic sales declined by 0.3%, while export volumes grew by 11.9% year-on-year.
The automaker achieved its highest-ever half-yearly net sales, totaling ₹69,464 crore in FY25, compared to ₹66,380 crore in the first half of FY24.
In the previous year, Maruti Suzuki acquired Suzuki Motor Gujarat (SMG), making it a fully-owned subsidiary. Following this acquisition, the board approved an amalgamation of SMG with Maruti Suzuki, effective April 1, 2025.
“The amalgamation will streamline operations, enhance synergies, and boost growth through a simplified structure, eliminating duplicative operations across both companies,” the automaker stated.
The merger will also enhance agility for quicker decision-making and align all business units with unified objectives, ultimately reducing administrative costs and maximizing shareholder value through resource optimization.
Following this announcement, Maruti Suzuki’s shares fell by 6.3% in intraday trading, reaching a low of ₹10,750 on the BSE.
