Maruti Suzuki Q2 net profit falls 9.8% to Rs2,240 crore

Maruti Suzuki (India) Ltd has reported a 9.8 per cent year-on-year fall in fiscal second quarter net profit to Rs2,240.40 crore, against a net profit of Rs2,484.30 crore in the year-ago quarter.

Maruti Suzuki, India’s largest carmaker, said its operating profit for the July-September 2018-19 quarter stood at Rs2,710 crore, lower by 9.5 per cent over the same period of the previous year.
The company sold a total of 484,848 vehicles during the quarter, which is 1.5 per cent lesser than compared to the same period of the previous year. Domestic sales stood at 455,400 units while the number of cars exported stood at 29,448 units, MSI said in a regulatory filing.
During the second quarter of the current fiscal, MSI registered net sales of Rs21,551.9 crore, a growth of 0.5 per cent over the same period last year.
MSI attributed the fall in operating profit to an increase in commodity prices, adverse foreign exchange movement and higher sales promotion expenses, partially offset by cost reduction efforts.
The company sold a total of 975,327 vehicles in H1, a growth of 10 per cent over the same period of the previous year. Sales in the domestic market stood at 919,240 units and exports were at 56,087 units.
During the period, the company recorded net sales of Rs43,362.6 crore, up 12.4 per cent over the same period of the previous year. Operating profit stood at Rs5,341 crore, a growth of 15.1 per cent over the same period previous year on account of higher sales volume and cost reduction efforts partially offset by increase in commodity prices and adverse foreign exchange movement.
Net profit in H1 (2018-19) stood at Rs4,215 crore, up 4.3 per cent compared to the same period last year. While the operating profit increased by 15.1 per cent, the net profit increased by 4.3 per cent due to lower non-operating income due to mark-to-market impact on the invested surplus, compared to same period last year, MSI said.