Maruti Suzuki Faces Profit Slump Amid Tax Changes

Maruti Suzuki India reported an 18% decline in consolidated net profit for Q2. The dip is attributed to changes in taxation on debt mutual funds. Revenue rose slightly, and vehicle export volume increased by 12%. The company also approved the merger with Suzuki Motor Gujarat.

Maruti Suzuki India, the nation's leading automaker, reported an 18% decline in its consolidated net profit for the second quarter, totaling Rs 3,102 crore. The decline was largely due to the removal of indexation benefits and altered tax rates on long-term capital gains from debt mutual funds.

During the same period last fiscal year, Maruti posted a net profit of Rs 3,786 crore. Despite this dip in profit, the company saw a marginal increase in total revenue from operations, reaching Rs 37,449 crore, up from Rs 37,339 crore in the previous year.

In the context of vehicle sales, Maruti Suzuki reported selling 5,41,550 units during the July-September quarter. While domestic sales dropped by 4%, export sales rose by 12%. Additionally, the board has greenlit the merger of Suzuki Motor Gujarat Pvt Ltd with the automaker in line with applicable corporate and tax laws.

(With inputs from agencies.)