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Maruti Suzuki performs well in Q2

by BQ News Bureau
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The Board of Directors of Maruti Suzuki India has approved the financial results for July-September 2020 (quarter 2) and April-September 2020-21.

The performance in this financial year has been affected by COVID-19 pandemic. In quarter 1, the performance of the company was significantly affected due to COVID-19 related disruptions and lockdowns. In quarter 2, the performance improved on the back of some demand recovery and gradual improvement in supply conditions. Production across the company’s factories and supply chain was progressively ramped up consistent with the policy of maximum safety of people and following all prescribed protocols.

The company sold a total of 393,130 vehicles in the second quarter, up by 16.2% compared to the same period in the previous year. Sales in the domestic market stood at 370,619 units, higher by 18.6%. Exports were at 22,511 units, lower by 12.7%.

During the quarter, the company registered net sales of Rs 176,893 million, higher by 9.7% compared to the same period previous year.

The operating profit for the quarter was Rs.11,677 million, a growth of 71.7% over the same period previous year on account of higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by increase in commodity prices and adverse foreign exchange movement. Net profit for the quarter stood at Rs.13,716 million, higher by 1.0%.

The net profit in Q2 of FY19-20 was higher due to market-to-market gains on the invested surplus and lower tax provision. As a result of this, while the operating profit increased by 71.7%, the net profit increased by 1.0%.

The company sold 469,729 vehicles during the period, lower by 36.6%, compared to the same period the previous year. Sales in the domestic market stood at 437,646 units. Exports were at 32,083 units. During the period, it registered net sales of Rs. 213,668 million, lower by 38.7%. Net profit for the period stood at Rs. 11,222 million, lower by 59.8%.

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