The Board of Directors of Maruti Suzuki India Limited (MSIL) today announced the company’s financial results for the second quarter of FY2024-25, showcasing a 6.3% year-on-year growth in Profit Before Tax (PBT) to reach an all-time high of INR 51,005 million. Despite the record PBT, the company’s Net Profit (PAT) fell to INR 30,692 million, a drop from INR 37,165 million in Q2FY2023-24, attributed to a provision of INR 8,376 million due to recent tax reforms.
Sales and Revenue Performance
During the quarter, MSIL sold 541,550 vehicles, with domestic market sales at 463,834 units, representing a 3.9% decline year-on-year. In contrast, export volumes surged by 12.1% to 77,716 units. Net Sales stood at INR 355,891 million, marginally higher than the previous year’s Q2 figures of INR 355,351 million.
For the first half of FY2024-25 (April-September), the company registered its highest-ever Net Sales of INR 694,644 million, an increase from INR 663,803 million in H1FY2023-24. H1 sales totaled 1,063,418 units, with domestic sales slightly down by 0.3% at 915,142 units, while export sales rose by 11.9% year-on-year.
Merger of Suzuki Motor Gujarat with MSIL
Following the acquisition of Suzuki Motor Gujarat Private Limited (SMG) as a fully-owned subsidiary, the Board has given in-principle approval for its amalgamation with MSIL. The appointed date for the merger is set for April 1, 2025, pending all regulatory approvals. This strategic merger aims to streamline operations and strengthen MSIL’s production capacity and market position.
Outlook and Challenges
The impact of tax changes on long-term capital gains, implemented under the Finance Act 2024, has presented financial challenges, with the new regulations affecting the company’s PAT this quarter. However, MSIL’s strong export performance and strategic restructuring initiatives reflect its resilience in an evolving market landscape.
