Maruti Suzuki Faces Profit Dip Amid Taxation Changes

Maruti Suzuki India reported an 18% decline in net profit in the second quarter, primarily due to higher provisioning stemming from taxation changes. Total revenue slightly increased, reaching a record turnover. The company anticipates strong export growth and plans to amalgamate Suzuki Motor Gujarat Pvt Ltd.

Maruti Suzuki India, the country's leading carmaker, reported an 18% year-on-year decline in consolidated net profit, hitting Rs 3,102 crore in Q2, largely due to higher provisioning after the removal of indexation benefits and adjustments in long-term capital gains tax.

Despite the drop in profit compared to last year's Rs 3,786 crore, Maruti Suzuki achieved its highest-ever quarterly turnover at Rs 37,449 crore. Chairman RC Bhargava highlighted the impact of the recent regulatory changes on financial performance, necessitating a Rs 800 crore provision.

The company sold 5,41,550 vehicles in Q2, with domestic sales slightly down and exports rising by 12%. Shares dropped by 4.11% following the earnings report. An executed plan to merge Suzuki Motor Gujarat Pvt Ltd with Maruti Suzuki was also announced.