Discounts a speed-breaker for Maruti: Q2 profit falls 39% to Rs 1,358 cr

Negative operating leverage, driven by a sharp fall in volumes, weighed on profitability

Maruti Suzuki’s September quarter results were broadly in line with Street estimates. Revenues fell over 25 per cent, compared to the year-ago quarter, led by a 30 per cent decline in volumes. 

The decline in revenues was less as compared to that in volumes, given the improvement in realisations or average revenue per unit. This improvement was on account of price hikes taken by the company to pass on the cost of transition to BSVI vehicles. Net profit, though down 39 per cent year-on-year (YoY) at Rs 1,358 crore, beat estimates, driven by higher other income and lower taxes.

In addition to