Maruti Suzuki profit shrinks 17% in September; stock nosedives

Maruti Suzuki , country's largest car maker, on Tuesday reported decline in net profit owing to lower domestic sales in second quarter of current financial year. Maruti Suzuki 's net profit in quarter ended September 30, declined 17 per cent to Rs 3,069 crore as against Rs 3,717 crore in same period last year.

earnings reported by Maruti Suzuki fell short of street expectations and led to sharp decline in Maruti Suzuki's share price. Analysts on an average were expecting country's largest car maker to report net profit of Rs 3,790 crore.

Maruti Suzuki's shares fell as much as 5.81 per cent to hit an intray low of Rs 10,814.

Its revenue from operations rose marginally by 0.4 per cent to Rs 37,203 crore in second quarter compared with Rs 37,062 crore in year ago period. New Delhi-hequartered company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit declined 8 per cent to Rs 4,416 crore as against 4,784 crore in year ago period.

Its EBITDA margin declined by 100 basis points to 11.9 per cent from 12.9 per cent in same period last year.

Maruti Suzuki's domestic sales in second quarter of current financial year declined 4 per cent to 4,63,834 vehicles while export sales rose 12.1 per cent 77,716 vehicles. company me a one-time provision of Rs 84 crore on account of withdrawal of indexation benefit and change in tax rate on long term capital gains on debt mutual funds as per Finance Act 2024.

For first six months of current fiscal Maruti Suzuki sold 10,63,418 units.

As of 1:53 pm, Maruti Suzuki shares tred 6 per cent lower at Rs 10,792, underperforming Sensex which was down 0.15 per cent. stock was also top loser in both Nifty 50 and 30-share Sensex.