Tue Oct 29 19:47:24 UTC 2024: ## Maruti Suzuki Profit Takes a Hit as Demand Slows, Shares Plunge

**New Delhi, October 29, 2024:** Maruti Suzuki India, the country’s leading passenger car manufacturer, reported a significant decline in its net profit for the second quarter of FY25, falling by 17% year-on-year. The company’s revenue remained stagnant, with a slowdown in demand and a drop in domestic sales volumes weighing down performance.

The company’s operating performance also suffered during the quarter ending September 2024, with a contraction in margins. Maruti Suzuki’s net profit for Q2 FY25 reached ₹3,069.2 crore, down from ₹3,716.5 crore in the same period last year. The decline was primarily attributed to a provision of ₹837.6 crore resulting from changes in tax laws.

While the company’s revenue from operations increased slightly to ₹37,202.8 crore, its domestic sales volume fell by 3.9%, despite a 12.1% rise in export volumes. At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) decreased by 7.7%, while the EBITDA margin shrunk by 100 basis points.

The disappointing results sent Maruti Suzuki shares plummeting on the BSE, falling by 5.05% to ₹10,902.40 apiece. The company’s board of directors has given in-principle approval for the amalgamation of its subsidiary, Suzuki Motor Gujarat Private Limited, with Maruti Suzuki India, effective April 1, 2025, subject to regulatory approvals.

Analysts believe the slowdown in demand and the company’s efforts to navigate the evolving market landscape are contributing to the challenging financial performance. Maruti Suzuki’s future performance will depend on its ability to revive domestic sales and manage operational costs in a competitive market environment.

Read More