Maruti Suzuki's Profit Dips Amid Tax Changes and Amalgamation News

Maruti Suzuki India reported an 18% decline in net profit for Q2, primarily due to tax changes. Despite an increase in revenue and export growth, domestic sales volume saw a decline. The company is set to amalgamate Suzuki Motor Gujarat with itself, pending regulatory approval.

Maruti Suzuki India announced an 18% year-on-year decrease in consolidated net profit for the second quarter, amounting to Rs 3,102 crore. This dip was attributed to the withdrawal of indexation benefits and modifications in the tax rate on long-term capital gains on debt mutual funds.

Despite a revenue rise to Rs 37,449 crore from last year's Rs 37,339 crore, the company's standalone net profit also fell by 17% to Rs 3,069 crore, compared to Rs 3,716 crore in the prior year. The net sales for the quarter stood steady at Rs 35,589 crore from last year's comparable figure of Rs 35,535 crore.

In terms of sales, Maruti Suzuki sold 5,41,550 vehicles in Q2, with domestic sales dropping by 4% while exports rose by 12% year-on-year. The automaker's board has approved the merger of its subsidiary, Suzuki Motor Gujarat Pvt Ltd. The amalgamation will proceed according to various legal provisions and regulatory guidelines.

(With inputs from agencies.)