Maruti Suzuki shares drop 6% as Q2 nos miss estimates; profit down 17% YoY

Maruti Suzuki Q2 results: Automobile giant Maruti Suzuki share price dropped up to 6.42 per cent to hit an intraday low of Rs 10,744.10 per share on Tuesday, October 29, 2024. 

 

The fall in Maruti Suzuki share price came after the company’s Q2FY25 results fell short of estimates.

 

The company’s standalone profit dropped 17.4 per cent year-on-year (Y-o-Y) to Rs 3,069.2 crore in Q2FY25, as against Rs 3,716.5 crore in the same quarter last year (Q2FY24).

 

Maruti Suzuki’s revenue from operations rose marginally (0.4 per cent) Y-o-Y to Rs 37,202.8 crore in the September quarter of financial year 2025, from Rs 37,062.1 crore in the same quarter last year.

 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, slipped 7.7 per cent annually to Rs 4,416.6 crore in the September quarter of FY25, from Rs 4,784.20 crore in the same quarter a year ago.

 

Consequently, Ebitda margin, or operating profit margin, squeezed 100 basis points (bps) to 11.9 per cent in the September quarter of FY25, from 12.9 per cent in the September quarter of FY24. 

 

During the quarter under review, the company sold 541,550 vehicles, of which the domestic market volume was 463,834 vehicles and the export volume was 77,716 vehicles. 

 

“While the domestic volume declined by 3.9 per cent, the export volume grew 12.1 per cent compared to the same period of the previous year,” Maruti Suzuki said in a statement. 

According to domestic brokerage InCred Equities, Maruti Suzuki Q2 Ebitda was below its estimates. Gross margin correction of 170 bps Q-o-Q led to this miss, it added.

 

However higher other income (+51 per cent Q-o-Q) led to a 2 per cent beat in PBT. Change in treasury income taxation led to additional deferred tax provision of Rs 840 crore, adjusted for which normalised PAT.

 

“We maintain Add rating, as its precision marketing policies help to manoeuvre through a tough demand environment with lower channel inventory. EV launch plan in FY25F will be a key trigger to watch,” analysts at InCred Equities said.

 

At 2:50 PM, shares of Maruti Suzuki were trading 5.38 per cent lower at Rs 10,864.55 per share. In comparison, BSE Sensex was trading 0.41 per cent at 80,331.25 levels.