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Maruti Suzuki Financial Results in Q2 shows decline of 30.2%

New Delhi: The Board of Directors of Maruti Suzuki India Limited today approved the financial results for the period July-September 2019 (Quarter 2) and April-September 2019-20.

The results of the Company for the quarter (July-September) and half year (April-September) FY 2019-20 have to be viewed in the context of exceptionally weak demand environment. This year, the automobile industry has seen a significant decline in sales owing to several factors. One of the main factors is increase in the cost of acquisition of the car due to various reasons coming together like implementation of more stringent safety and emission (BS6) norms, increase in vehicle insurance expenses and hike in road taxes in many states. Along with this, the lower availability of finance and increased down payment requirement have affected the affordability of customers to own cars.

Highlights: Quarter 2 (July-September 2019-20)

The Company sold a total of 338,317 vehicles during the Quarter, lower by 30.2% compared to the same period previous year. Sales in the domestic market stood at 312,519 units, lower by 31.4%. Exports were at 25,798 units.During the Quarter, the Company registered Net Sales of Rs. 161,204 million, lower by 25.2% compared to the same period previous year.

Net profit for the Quarter stood at Rs. 13,586 million, lower by 39.4% compared to the same period previous on account of lower sales volume, higher sales promotion expenses and higher depreciation expenses, partially offset by cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate.

Highlights: H1 (April-September 2019-20)

The Company sold a total of 740,911 vehicles during the period, lower by 24% compared to the same period previous year. Sales in the domestic market stood at 687,000 units, lower by 25.3%. Exports were at 53,911 units.During the period, the Company registered Net Sales of Rs. 348,556 million, lower by 19.6% compared to the same period previous year.

Net profit for the period stood at Rs. 27,941 million, lower by 33.7% compared to the same period previous on account of lower sales volume, higher sales promotion expenses and higher depreciation expenses, partially offset by cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate

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