Maruti Suzuki India, the country's leading passenger vehicle (PV) company, reported its Q2 performance on Tuesday. For the July-September quarter, the company's net profit or PAT came in at Rs 3,069.2 crore, an over 17 per cent decline from the net profit of Rs 3,716.5 crore reported in Q2FY24. Zee Business research expected profit at the four-wheeler major to come in at Rs 3,790 crore, a 2 per cent growth year-on-year (YoY)

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Nevertheless, analysts anticipated profitability to be impacted by a deferred tax provision of Rs 850 crore.

The company's press release said this steep decline is attributed to a provision of Rs 837.6 crore resulting from the withdrawal of the indexation benefit and change in tax rate on long-term capital gains on debt mutual funds as per the Finance Act 2024.

The total revenue from operations during the reporting quarter came in at Rs 37,202.8 crore, which is higher than the Zee Business estimates of Rs 37,120 crore. In the year ago-period, the company's revenue was recorded at Rs 37,062 crore.

The operating EBIT declined over 8 per cent on-year to Rs 3,665.7 crore in Q2FY25 as against Rs 3,990.1 crore in the same period last year.

During the review quarter, the company sold a total of 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 by 12.1 per cent compared to the same period of the previous year, added the release.

During the quarter, the company registered net sales of Rs 35,589.1 crore as against Rs 35,535.1 crore in the same period of the previous year. 

Maruti Suzuki's share price performance 

After the company's results, its shares tumbled up to 6.38 per cent to the day's low price of Rs 10,750. In the past one year, the stock has risen nearly 5 per cent.