Maruti Suzuki Q2 Profit Rises 1% To Rs 1,372 Crore

The Board of Directors of Maruti Suzuki India Limited today approved the financial results for the period July-September 2020 (Quarter 2) and April-September 2020-21.

This performance in this financial year has been affected by the unforeseen 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 our policy of maximum safety of the people and following all prescribed protocols to ensure this.

Highlights: Quarter 2 (July-September), FY 2020-21

The Company sold a total of 393,130 vehicles during the Quarter, higher by 16.2% compared to the same period 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 INR 176,893 million, higher by 9.7% compared to the same period previous year.

The Operating Profit for the Quarter was INR 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 INR 13,716 million, higher by 1.0% compared to the same period previous year.

The Net Profit in Quarter 2 of the previous year FY19-20 was higher due to mark-to-market gains on the invested surplus and lower tax provision. As a result of this, while the Operating Profit increased by 71.7% over the same period previous year, the Net Profit increased by 1.0%.

Highlights: H1 (April-September), FY 2020-21

The company’s performance in the first half has to be seen in conjunction with COVID-19 related disruptions.

The Company sold a total of 469,729 vehicles during the period lower by 36.6% compared to same period previous year. Sales in the domestic market stood at 437,646 units. Exports were at 32,083 units.

During the period, the Company registered Net Sales of INR 213,668 million, lower by 38.7% compared to same period previous year.

Net Profit for the period stood at INR 11,222 million, lower by 59.8% compared to same period previous year.