Tue Oct 29 18:58:50 UTC 2024: ## Maruti Suzuki Shares Plunge After Disappointing Q2 Results

**Mumbai, India -** Maruti Suzuki, India’s largest passenger car manufacturer, saw its shares tumble over 5% in early trading on Tuesday following the release of its Q2 results, which fell short of market expectations. At 1:45 pm, shares were trading 5.54% lower at Rs 10,846.30 on the Bombay Stock Exchange (BSE).

The company reported a 17% drop in standalone net profit for the September quarter, reaching Rs 3,069 crore compared to Rs 3,716.5 crore a year earlier. This figure missed analyst predictions, which had estimated a net profit of around Rs 3,525 crore.

While revenue from operations remained nearly unchanged year-over-year at Rs 35,589 crore, it fell short of anticipated growth. Analysts had expected higher sales amid strong consumer demand.

A significant factor impacting Maruti’s Q2 net profit was a substantial increase in deferred tax expenses, which surged to Rs 1,017 crore from Rs 83 crore in the previous year. This spike heavily impacted the company’s bottom line.

Maruti’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) for the quarter also came in lower than anticipated, reaching Rs 4,417 crore compared to analyst estimates of Rs 4,690 crore. This represents a 7.7% decline year-on-year.

The EBITDA margin further contracted by 100 basis points to 11.9% compared to 12.9% in the same period last year, highlighting the impact of higher expenses and lower-than-expected revenue.

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