Maruti Suzuki's net profit for FY2019-20 drops by 25%

Maruti Suzuki has announced its financial results for FY2019-20 and the fourth quarter of the same period. The company's net profit stood at Rs. 56,506 million, lower by 24.7% over the same period in the previous year. The company's net sales amounted to Rs. 7,16,904 million, which is 13.7% less compared to the previous year.

The carmaker sold 15,63,297 vehicles during the year. That is 16.1% less compared to the same period in the previous year. In the domestic market, Maruti sold 14,61,126 units, which is 16.7% less than during the same period in the previous year. Exports also dropped by 6% to 1,02,171 units.

According to the company, lower sales volume, high sales promotion expenses and higher depreciation expenses could be attributed to the drop in net profit.

In Q4 (January-March 2020), Maruti sold 3,85,025 vehicles, which was a fall of 16% compared to the same period in the previous year. Domestic sales dropped by 16% to 3,60,428 units, while exports stood at 24,597 units, a fall of 16.9% compared to the previous year.

Net sales in Q4 stood at Rs. 1,71,857 million (a drop of 17.1%), while net profit stood at Rs. 12,917 million, which is 28.1% less compared to the same period in the previous year.