Maruti Suzuki India Ltd. (MSIL), India’s largest car manufacturer, released its Q2 FY25 financial results, revealing a disappointing performance marked by declines in key profitability metrics and a miss on analyst estimates. The results highlighted the challenges the company faces in managing costs and sustaining margins amidst increasing market competition and rising input expenses.
For the quarter, Maruti Suzuki reported revenue from operations of ₹37,202.8 crore, which showed a modest year-on-year (YoY) growth of 0.4% from ₹37,062.1 crore in Q2 FY24 and a quarter-on-quarter (QoQ) increase of 4.7% from ₹35,531.4 crore. Despite this revenue growth, the company’s net profit took a hit, declining to ₹3,070 crore, down from ₹3,700 crore in the same quarter last year, missing the market’s forecasted figure of ₹3,779 crore.
EBITDA for the quarter came in at ₹4,416.6 crore, which was below the forecast of ₹4,672 crore, with the EBITDA margin contracting to 11.9% from 12.91% YoY, also falling short of the estimated 12.7%. This decline in margin underscores the impact of rising costs and a highly competitive market, where higher discounting may be required to drive sales in the passenger vehicle segment.
As of 1:40 pm, Maruti Suzuki shares were trading 4.77% lower at ₹10,935.45 on the NSE, reflecting investor concerns over the weaker-than-expected financial performance. The company’s results have sparked discussions on its ability to maintain profitability in an increasingly challenging market environment.
