Maruti Suzuki on Tuesday reported a 17.4 per cent slump in its net profit in the second quarter in the current 2024-25 fiscal year (FY25). The automaker clocked a profit of Rs 3,069.2 crore in the July-September quarter in FY25, in comparison to Rs 3,716.5 crore logged in the corresponding quarter in the preceding 2023-24 fiscal year (FY24).
The auto major said that its revenue stood flat as domestic sales volume declined and demand weakened. However, the company said that recent changes in the Finance Act, 2024 such as withdrawal of indexation benefits and tax rate change on long-term capital gains on debt mutual funds resulted in a one-time impact on its profit in the quarter. As such, the firm had to account for deferred tax liability worth Rs 837.6 crore. This impact was informed earlier to the stock exchange on August 17, 2024.
The firm's overall sales during the quarter under review touched 541,550 units, while domestic market volume accounted for 463,834 vehicles of the total sales. The domestic volume of the sales slipped 3.9 per cent during the quarter and the export volume climbed 12.1 per cent in comparison to the same quarter a year earlier.
Its revenue from operations inched up slightly from Rs 37,062.1 crore reported in the July-September quarter in FY24 to Rs 37,202.8 crore logged in Q2FY25.
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Suzuki Motor Gujarata became a 100 per cent subsidiary of Maruti Suzuki India Limited last year. “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 1st April 2025, subject to all legal and regulatory compliances,” the firm said via an official release.
The firm said that its sales promotion expenses surged during the quarter, but it did clock an improvement in non-operating income during the period.
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