Maruti Suzuki Reports Mixed Q2 FY2024-25 Results

Maruti Suzuki India Limited released its Q2 (July-September) financial results for FY2024-25, showing a complex picture of growth in some areas and challenges in others. The company highlighted domestic market challenges, export growth, record-breaking half-year sales, and a significant tax impact on profitability. During Q2, Maruti reported a total vehicle sale of 541,550 units, marking both gains and declines within its market distribution. The domestic sales volume reached 463,834 vehicles, which represents a 3.9 per cent decline compared to the same quarter of the previous fiscal year. Despite the dip in domestic sales, the company saw growth in exports, selling 77,716 units, which translates to a 12.1 per cent increase year-on-year. 

Also Read: Maruti MD Says Customers Are Demanding More Technology In Cars

Maruti’s Q2 financial performance showed a slight increase in net sales and a significant, but complex impact on profits. It’s net sales for the quarter totalled ₹355,891 million, a marginal increase from ₹355,351 million in the same period last year. The PBT for the quarter increased by 6.3 per cent year-on-year to reach ₹51,005 million, marking the highest-ever quarterly PBT for the company. Despite the increase in PBT, Maruti’s net profit saw a decline to ₹30,692 million from ₹37,165 million in Q2 FY2023-24. 

This drop was attributed to a provision of ₹8,376 million, resulting from recent changes in tax laws. Specifically, the Finance Act 2024 withdrew the indexation benefit and altered the tax rate on long-term capital gains for debt mutual funds, impacting Maruti’s profitability. The company had previously informed the stock exchanges of this impact in August 2024. 

Also Read: Festive Season 2024: Which CNG Car To Consider Under ₹15 Lakh

For the first half (H1) of FY2024-25, MSIL sold a total of 1,063,418 vehicles from April to September 2024, comprising 915,142 units in the domestic market and 148,276 units in the export market. Despite market challenges, the company’s domestic sales remained stable with a minor decline of 0.3 per cent year-on-year. 

The export volume continued to grow robustly, showing an 11.9 per cent increase compared to H1 FY2023-24. Maruti recorded its highest-ever half-yearly net sales at ₹694,644 million, compared to ₹663,803 million in H1 FY2023-24. The company’s net profit for H1 rose to ₹67,191 million, up from ₹62,016 million in the previous year’s corresponding period.

Also Read: New Maruti Suzuki Dzire India Launch Date Announced