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Maruti Suzuki Q2 Net Profit Falls 26.4% to ₹2,466 Cr Due to Rising Costs
Sentiment: NeutralHigh Priority
What Happened?
Maruti Suzuki's net profit dropped 26.4% year-on-year to ₹2,466.1 crore in Q2 FY27, driven by rising commodity prices and losses on mutual fund investments.
Key points
- Consolidated revenue rose 26% year-on-year to ₹53,355 crore.
- Total expenses increased 29.7% year-on-year to approximately ₹50,619 crore.
- Operating earnings before interest, tax, depreciation, and amortization (EBITDA) margin improved to 9.4% in Q2 from 8.6% in Q1.
- Maruti sold 696,654 vehicles in Q2, up 26.5% year-on-year.
- The company has already increased prices three times in FY27.
Key insights
- The increase in expenses outpaced revenue growth, affecting profitability.
- Rising commodity prices and foreign exchange movements are significant pressures on margins.
- The strong demand for CNG vehicles may influence future production strategies.
Why it matters
The profit decline highlights challenges in managing rising costs while maintaining sales growth.
Tags
Entities
Maruti Suzuki· CompanyHisashi Takeuchi· PersonArnab Roy· PersonR C Bhargava· PersonIndia· Country
Source
Business Standard
