Maruti Suzuki is set to announce its Q2 results on Tuesday. Shares of the company were trading in red on Tuesday morning. 

What Happened: India's leading car manufacturer is expected to post a tepid quarter due to weak volumes. Maruti is expected to post a net profit of ₹3,796.18 crore, a 2.14% growth from the previous year, according to average estimates of five brokerages. The company's revenue may come at ₹37,102.56 crore, almost flat from the previous year's ₹37,062.1 crore. 

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Motilal Oswal expects total sales volume to be down 2% year on year due to weakness in entry-level cars and sports utility vehicles. The brokerage also expects EBITDA margin by 40 basis points sequentially due to higher discounts.

Kotak also expects revenue to remain flat due to weak sales volume and higher discounts which was slightly offset by a 2% year-on-year increase in average sales price led by a richer product mix.

In September auto numbers, Maruti Suzuki’s total sales were up 1.86% to 1,84,727 units compared to 1,81,343 units in the previous year.

The company had also reduced prices of some of the models in September after August sales declined by 4% to 1.81 lakh units. Prices of some variants of Alto K10 and S-Presso have been reduced by ₹6,500 and ₹2,000, respectively.

Price Action: Shares of Maruti Suzuki were down 1.95% to ₹11,259.35 on Tuesday morning ahead of the results.

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