Maruti Suzuki Shares Plummet Amid Profit Slump

Maruti Suzuki India's shares fell over 4% after reporting an 18% year-on-year decline in quarterly net profit. The company's net profit for the September quarter was Rs 3,102 crore, impacted by tax changes and indexation benefit withdrawal, with only a slight increase in total revenue from operations.

Shares of Maruti Suzuki India faced a sharp decline of over 4% on Tuesday, following the announcement of an 18% year-on-year drop in consolidated net profit for the September quarter.

The stock closed at Rs 11,010 on BSE after intra-day trading saw a fall to Rs 10,744.10. On NSE, it was down to Rs 11,005, leading to a market capitalization loss of Rs 14,846.09 crore reaching Rs 3,46,157.23 crore. This decline made it the most significant underperformer among major indices, Sensex and Nifty.

The company attributed this financial setback to the removal of indexation benefits and revised tax rates on long-term capital gains from debt mutual funds. Despite total revenue growing to Rs 37,449 crore, the standalone net profit was down by 17% at Rs 3,069 crore. The company managed to sell 5,41,550 vehicles, with a sizable portion being domestic sales.

(With inputs from agencies.)