Net profit fell to Rs 5,650 crore, a decline of 24.7 percent YoY.
Net sales slumped to Rs 71,690 crore, a fall of 13.7 percent YoY.
Domestic sales stood at 14,61,126 units, lower by 16.7 percent YoY.
Maruti Suzuki India Limited (MSIL) today announced financial results for the fiscal ending in March 2020. The company’s net profit for the recently concluded financial year has been pegged at Rs 5,650 crore, which translates into a year-on-year (YoY) decline of 24.7 percent. The fall in profit margins has been attributed to lower sales volumes, higher sales promotion expenses and higher depreciation expenses. Maruti Suzuki also reports that the declining profits were partially cushioned by lower operating expenses, cost-reduction initiatives, higher fair value gains on invested surplus, and reduction in corporate tax rates.
MSIL registered net sales of Rs 71,690 crore in FY2020, lower by 13.7 percent compared to year-ago figures. Total sales of the country’s largest automaker stood at 15,63,297 units in the fiscal (-16.1 percent YoY), including exports of 1,02,171 units (-6 percent YoY) and domestic sales of 14,61,126 units (-16.7 percent YoY).
After facing unprecedented headwinds owing to a general economic downturn and rising prices due to mandatory regulations, the Indian automotive industry came to a grinding halt towards the end of FY2020 due to the nationwide lockdown. While Maruti Suzuki posted a 47 percent decline in total sales units in March (to 83,792), it reported zero domestic sales the following month, similar to other automakers in the country, as a consequence of shuttered production facilities and retail networks. The company has since then announced the commencement of manufacturing at its Manesar plant in Haryana from May 12, albeit on a limited scale.
Moving forward, the manufacturer has lined up the launch of the petrol-powered S-cross in the coming weeks, as well as a mild refresh for the Swift hatchback later this year. In addition to this, Maruti will debut the fourth-gen Jimny for our market in 2021.
Maruti Suzuki to restart production at Manesar plant on May 12