Maruti Suzuki India (MSIL) on Tuesday reported a decline of 18 per cent year-on-year (y-o-y) in its consolidated net profit to ₹3,102.5 crore for the second quarter (Q2) ended September 30 due to poor demand in the domestic market.
The auto major had reported a consolidated net of ₹3,786 crore in the same period last year.
However, total revenue from operations grew marginally to ₹37,449 crore y-o-y for the quarter in review, as compared with ₹37,339 crore in the July-September quarter last year.
The company said the impact for fall on net profit was also due to a provision of ₹837.6 crore resulting from withdrawal of indexation benefit and change in tax rate on long term capital gains on debt mutual funds as per the Finance Act 2024. This impact was intimated earlier to the stock exchanges on August 17, 2024.
“Festival season has been pretty good. In retail sales compared to same period, starting from the end of Shradh till the end of Diwali, we are expecting that we will have roughly a 14 per cent growth (y-o-y) and that will have its impact on the inventory. It will come down by end of this month,” said RC Bhargava, Chairman, MSIL, .
He noted that the new enquiries and bookings are also better than last year, but not by very much. “Therefore, we look forward to a reasonable quarter where we should continue with our growth, but the growth is not going to be very much different, from the three and four per cent,” he added.
Sales numbers
The company sold a total of 5,41,550 vehicles (as compared with 5,52,055 units sold in same period last year) during the quarter. Of this, the domestic market volume was 4,63,834 vehicles (4,82,731 units in Q2 FY24) and the export volume was 77,716 vehicles (69,324 units in Q2 FY24).
“While the domestic volume declined by 3.9 per cent y-o-y, the export volume grew 12.1 per cent compared to the same period of the previous year,” MSIL said.
Meanwhile, MSIL said its Board has, in principle, approved the amalgamation of Suzuki Motor Gujarat Pvt Ltd, a wholly-owned subsidiary, with the company. The appointed date for the amalgamation is April 1, 2025, subject to all legal and regulatory compliances, it said.
The amalgamation will be carried out in accordance with the relevant provisions of the Companies Act, 2013, along with the associated rules, the Income Tax Act, 1961, and other applicable laws, as amended from time to time.
Shares of MSIL closed at ₹11,047.55 apiece on the BSE on Tuesday, down 3.79 per cent from the previous close.