Maruti Suzuki Shares in Focus After Release of Q2 FY25 Results

On October 29, 2024, India’s leading car manufacturer, Maruti Suzuki India Limited (MSIL) released its financial results for Q2 FY25 and 1HFY25. During the quarter, the company achieved a total vehicle sales figure of 5,41,550 units, with 4,63,834 vehicles sold in the domestic market and 77,716 vehicles exported. Notably, domestic sales saw a decline of 3.9%, while export volumes increased by 12.1% compared to the same period last year.

In terms of financial performance, the company registered net sales of ₹3,55,891 million, a slight increase from ₹3,55,351 million in Q2FY24. The profit before tax (PBT) grew by 6.3% year-on-year to reach ₹51,005 million, marking the highest PBT in the company’s history. However, the net profit (PAT) for the quarter decreased to ₹30,692 million, down from ₹37,165 million in Q2 FY24. This decline was primarily due to an ₹8,376 million provision resulting from changes in tax regulations, specifically the withdrawal of the indexation benefit on long-term capital gains for debt mutual funds, as outlined in the Finance Act 2024. This impact was previously communicated to stock exchanges on August 17, 2024.

1HFY25 Performance

For the first half of FY2024-25 (April-September), Maruti Suzuki sold a total of 10,63,418 units. This figure includes 9,15,142 units in the domestic market and 1,48,276 units in the export market. While domestic sales experienced a minor decline of 0.3%, export sales showed a healthy growth of 11.9% year-on-year. The company achieved its highest-ever half-yearly net sales of ₹6,94,644 million, compared to ₹6,63,803 million in H1 FY2023-24. Net profit for the first half reached ₹ 67,191 million, an increase from ₹ 62,016 million in the same period last year.

Amalgamation of Suzuki Motor Gujarat with MSIL

In a strategic move, the Board has also considered the amalgamation of Suzuki Motor Gujarat Private Limited (SMG), which became a 100% subsidiary of MSIL last year. The Board has granted in-principle approval for this amalgamation, with the appointed date set for April 1, 2025, pending all necessary legal and regulatory compliances.

On October 30, 2024, Maruti Suzuki shares opened at ₹11, 005.00 and touched the day high of ₹11,375.00 at 09:30 AM.

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