(Photo : www.marutisuzuki.com)

• Maruti Suzuki India reported an 18% drop in Q2 net profit, attributed to changes in tax rate and withdrawal of indexation benefit.
• Despite the profit drop, net sales remained steady and the company sold a total of 541,550 vehicles during the quarter.
• The company's stock fell by 5.7% following the announcement of the financial results.
• Maruti Suzuki's Manesar facility recently hit the 1-crore cumulative production milestone, showcasing its resilience amidst economic challenges.

Maruti Suzuki India, the country's largest automaker, reported a nearly 18% drop in net profit for the second quarter of this fiscal year (FY25), falling to Rs 3,069 crore from Rs 3,716 crore in the same quarter last year. This decline is attributed to a provision of Rs 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.

Despite the drop in net profit, the company registered net sales of Rs 35,589 crore against Rs 35,535 crore in the same period of the previous year. For the first six months of the current fiscal (H1 FY25), the company clocked a net profit of Rs 6,719 crore, marking a growth from Rs 6,201 crore in H1 FY24.

However, the company's stock took a hit, going down almost 5.7% at Rs 10,829.05 apiece on Tuesday after the financial results were announced.

Maruti Suzuki's Sales and Production Milestones

The company sold a total of 541,550 vehicles during the quarter, with the domestic market volume accounting for 463,834 vehicles and the export volume standing at 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.

In the first half of the current fiscal, the company sold a total of 1,063,418 units, comprising 915,142 units in the domestic market and 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.

Maruti Suzuki India recently crossed the 1-crore cumulative production milestone at its Manesar facility in Haryana. This achievement made the facility the fastest among Suzuki's global automobile manufacturing facilities to reach the milestone in just 18 years.

Q2 Earnings Season in Full Swing

The Q2 earnings season is in full swing with major companies across sectors releasing their Q2 reports. Companies like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Bharti Airtel, HUL, ITC, Adani Wilmar, Nestle India, BHEL, Punjab National Bank, Axis Bank, HDFC Bank, LTIMindtree, Coal India, JSW Steel, BPCL, ICICI Bank, TVS Motor, Havells India, Paytm, Zomato, PVR Inox, Bajaj Auto, Piramal Pharma, among many others have announced their Q2 numbers.

The week ahead will witness giants like Larsen & Toubro, The Tata Power Company, Dabur India, Aditya Birla Capital, Procter and Gamble Hygiene and Health Care, Biocon, and others announcing their Q2 numbers. The Q2 results of Maruti Suzuki India, Adani Enterprises, Adani Ports and Special Economic Zone, Cipla, Canara Bank, Marico, Prestige Estates Projects, SBI Cards & Payment Services, Voltas, Hitachi Energy India, Honeywell Automation, APL Apollo Tubes, Vedant Fashions, V-Guard Industries, V-Mart Retail, Force Motors, GlaxoSmithKline Pharmaceuticals, Asahi India Glass, Godrej Agrovet, Symphony, among others are lined up for release.