Net profit of Maruti Suzuki India Ltd fell 18% year-on-year to ₹3,102 crore for the quarter ended September compared with ₹3,786 crore in the corresponding quarter last year.
The profit decline was due to a provision of ₹837 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, India’s largest carmaker says in a statement. This impact was intimated earlier to the stock exchanges on August 17, 2024, it says.
Revenue from operations rose marginally by 0.3% year-on-year to ₹37,449 crore for the second quarter.
The company sold a total of 541,550 vehicles during the 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.
During the quarter, the company registered Net Sales of ₹35,589 crore against ₹35,535 crore in the same period of the previous year.
In the first half of FY25, Maruti Suzuki sold a total of 1,063,418 units during the period, comprising 915,142 units in the domestic market and at 148,276 units in the export market. While the domestic market sales declined by 0.3%, the export sales volume grew by 11.9% year-on-year.
The automaker registered its highest-ever half-yearly net sales of ₹69,464 crore in FY25 as compared to ₹66,380 crore in H1 2023-24.
Last year, Maruti Suzuki acquired Suzuki Motor Gujarat to make it a 100% subsidiary of the company. The board considered the structure after the acquisition and gave an in-principle approval for the amalgamation of SMG with MSIL. The appointed date for the amalgamation is April 1, 2025.
“The amalgamation will consolidate the business of both the companies which will result in focused growth, operational efficiencies, and enhance business synergies. It will also lead to simplification of group structure by eliminating multiple companies in same business,” the automaker says.
“The amalgamation would improve agility to enable quick decision making in MSIL's operations and align direction of each business unit towards common goals. The amalgamation would eliminate administrative duplications, consequently reducing administrative costs of maintaining separate entities,” it adds.
The financial, managerial, technical resources, personnel capabilities, skills, and expertise of both the companies pooled m MSIL, will lead to rationalisation of cost thereby maximising shareholders' value, it says.
Shares of Maruti Suzuki 6.3% in intraday trade to hit a low of ₹10,750 on the BSE.
