Auto-giant
Maruti Suzuki witnessed a marginal rise in standalone net profit of Rs1371.6cr for the quarter ended September 2020 (Q2FY21), compared to a profit of Rs1358.60cr recorded a year ago same period. In June 2020 quarter, Maruti registered a loss of Rs249.4cr.
Talking about the bottom-line front, Maruti said, 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 the previous year, the Net Profit increased by 1%.
Furthermore, Maruti recorded an operating profit of Rs1,167.7cr in the quarter higher by 71.7% yoy. This was on account of higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by an increase in commodity prices and adverse foreign exchange movement.
In the period, the company recorded a net sales of Rs17,689.3cr in the quarter, increasing by 9.7% against the same quarter of the previous year.
Maruti in its financial audit report said 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."
Maruti added 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.
Maruti sold a total of 393,130 vehicles during the Quarter, higher by 16.2% compared to the same period 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%.
Maruti stock finished at Rs7114 per piece down 0.95% on Sensex.