Maruti Suzuki logs sales of 3,93,130 vehicles during 2nd Quarter; net profit Rs 13,716 mn
Maruti Suzuki has sold a total of 3,93,130 vehicles during the 2nd 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%. On the other hand, exports were at 22,511 units, which were lower by as much as 12.7%
Maruti Suzuki has sold a total of 3,93,130 vehicles during the 2nd 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%. On the other hand, exports were at 22,511 units, which were lower by as much as 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% 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
While Operating Profit increased by 71.7% over the same period previous year, the Net Profit increased by 1.0%
RC Bhargava, Chairman, Maruti Suzuki, speaking to the media, said that the second quarter has been much better than the first quarter.
He said, "We are substantially lower in quarter 2 in comparison to last two years, but in October we will see sales which are comparable to last year."
With the festival season in full swing, Bhargava said, "November is exciting with Dhanteras and Diwali and December will be alright. After that the situation is hard to predict."
On the fuel prefereance now among buyers, he said, "Petrol share has risen in the portfolio since we're not selling diesel anymore. CNG share has risen from 7% to almost 11% YoY."
Going forward, he added that the company will pay more attention to CNG vehicles.
On regional preferences, Bhargava said, "Rural segment is expected to grow more substantially."
On buyers in cities, he said, "Cant predict purchasing power of people in Urban areas because of their economic situation. Don't see huge urban demand after festive season, it is not about people don't wanting to own a car, but itll be because of monetary issues."
On what can change things, Bhargava said, the govt's policy decisions will play a crucial role.
Bhargava refused to make a prediction for Q4 and next year.
Maruti Suzuki: H1 (April-September), FY 2020-21
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 even as exports were at 32,083 units.
Company registered Net Sales of Rs 2,13,668 million, lower by 38.7% compared to same period previous year.
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Net Profit for the period stood at Rs 11,222 million, lower by 59.8% compared to same period previous year.
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