Maruti Q2 profits fall by 40%

Maruti Suzuki has released its financial results for the second quarter of FY2019-20. The carmaker registered a 39.4% decline in net profit during the period of July-September 2019.

Maruti registered net sales of Rs. 1,61,204 million, lower by 25.2% compared to the same period last year. In the domestic market, the carmaker sold 3,12,519 units, which was 31.4% less than the previous year, while exports stood at 25,798 units. Total sales were down 30.2%.

In the first half of FY2019-20 (April-September), Maruti sold 7,40,911 units, which was 24% less than last year's sales. The carmaker sold 6,87,000 units in the domestic markets (-25.3%) and exported 53,911 units.

Maruti registered net sales of Rs. 3,48,556 million, 19.6% less compared to the same period the previous year, while net profit stood at Rs. 27,941 million, which was 33.7% down on last year.

According to Maruti, the main factors for drop in profits was the increase in the cost of acquisition of cars thanks to BS-VI and safety norms, higher insurance costs, higher road tax, lower availability of finance and increased down payment.