Tue Oct 29 18:58:51 UTC 2024: ## Maruti Suzuki Shares Plunge After Weak Q2 Earnings

**New Delhi, [Date]** – Maruti Suzuki India, India’s largest passenger car manufacturer, saw its share price plummet by 4.2% on [Date] after the company reported a disappointing Q2 FY25 earnings report. The stock closed at Rs 11,000, marking a significant decline from the previous day’s close.

The company’s net profit for the quarter fell by a staggering 18% to Rs 3,103 crore, missing analysts’ estimates by a considerable margin. This decline was attributed primarily to a deferred tax liability of Rs 1,018 crore, stemming from recent regulatory changes impacting capital gains tax.

While revenue from operations rose slightly to Rs 37,449 crore, exceeding estimates, the overall performance was considered weak, likely due to a slowdown in demand and declining volumes. Domestic sales fell by 3.9% to 4.64 lakh units in the quarter ended September 30, while export volumes fared better, increasing by 12.1% to 77,716 units.

Despite the weak earnings, Maruti Suzuki’s profit before tax (PBT) saw a year-on-year increase of 6.3% to Rs 5,100 crore, marking a record high for the company.

In other news, the board of directors at Maruti Suzuki approved the amalgamation of Suzuki Motor Gujarat Private Limited (SMG) with MSIL, effective from April 1, 2025, subject to regulatory approvals. SMG, a 100% subsidiary of MSIL, is expected to become fully integrated under MSIL’s umbrella, streamlining operations.

For the first half of FY25, Maruti Suzuki sold a total of 10.63 lakh units, with 9.15 lakh units in the domestic market and 1.48 lakh units in the export market.

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