Q2 2025 Maruti Suzuki India Ltd Earnings Call Transcript
Key Points
- Maruti Suzuki India Ltd (BOM:532500) achieved a significant milestone with its Manesar facility reaching a cumulative production of INR1 crore units, making it the fastest among Suzuki's global facilities to achieve this.
- The company expanded its sales network by inaugurating its 500th NEXA sales outlet, enhancing customer reach across more than 300 cities.
- Maruti Suzuki introduced CNG options in its fourth-generation Epic New Swift, contributing to a growing consumer preference for CNG vehicles, with one in every three cars sold being a CNG vehicle.
- The Grand Vitara and FRONX SUVs achieved impressive sales milestones, with the FRONX being the first SUV from Maruti Suzuki to be exported to Japan.
- The company maintained a strong export performance, commanding nearly 40% of India's total passenger vehicle exports in Q2 and H1, with export volumes growing by 12.1% year-on-year.
- Domestic market volume declined by 3.9% compared to the same period last year, indicating challenges in the domestic market.
- The net profit for the quarter declined due to a provision resulting from the withdrawal of indexation benefit and change in tax rate on long-term capital gains on debt mutual funds.
- Operating profit margin (EBIT) decreased to 10.3% from 11.1% in the previous quarter, affected by adverse commodity prices and higher sales promotion expenses.
- The demand for small cars continues to decline, with the company relying on limited editions to maintain interest in this segment.
- Despite a healthy festive demand outlook, the company anticipates higher sales promotion expenses, which could impact margins.
Ladies and gentlemen, good day, and welcome to the Q2 FY25 earnings conference call of Maruti Suzuki India Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Pranav Ambaprasad thank you, and over to you, sir.
Thank you, Pia. Ladies and gentlemen, good afternoon, once again. Welcome you all to the Q2 FY25 earnings call. May I introduce you to the management team from Maruti Suzuki. Today, we have with us our Chief Investor Relations Officer, Mr. Rahul Bharti; and CFO, Mr. Arnab Roy.
Before we begin, may I remind you of the safe harbor we may be making some forward-looking statements that have to be understood in conviction with uncertainty and the risks that the company faces. I also like to inform you that the call is being recorded, and the audio call and the transcript will be available at our website. Please note that in case of any inadvertent error during the live audio
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