The slow down in the automobile industry sees Maruti Suzuki recording a drop in profits by 27.3% in Q1 in 2020 from what it did in Q1 in 2019. Sales too are down by 18%.
Maruti Suzuki announced their official numbers for the first quarter of Financial Year 2019-20 today. They have registered a decline in profits of 27.3% in the first quarter, ending on June 30. Maruti Suzuki’s net profit between April and June 2019 stood at Rs 1,435 crore, against the Rs 1,975 crore PAT (profit after tax) acquired during the same period in the Financial Year 2018-19.
Maruti Suzuki’s total revenue from sale of cars for the Q1 stood at ₹ 18,735 crore, lower by 14.1 % year-on-year basis (y-o-y) compared to the same period the previous year, during which the net sales touched ₹ 21,810 crore. Judging by the slow down of the automobile industry as a whole, a drop in profits was inevitable. However, analysts had expected even worse, some expecting as low as 38% decline in year-on-year profits. Maruti Suzuki still beat the predictions with a decline of just a 27.3%.
Maruti Suzuki’s total income for the quarter, including total operation revenue and other income, stood at ₹ 20,556 crore, recording a decline of 9.52% compared to the company’s total income of ₹ 22,731 crore reported in Q1 of FY 2019. In comparison, in the Q4 of 2019, which ended with March 31, Maruti registered a total income of ₹ 22,327 crore, and a profit after tax of ₹ 1,795 crore.
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In the April-June quarter of the financial year 2020, Maruti sold a total of 402,594 vehicles, lower by 17.9 % compared to the same period the previous year. Sales in the domestic market stood at 374,481 units, lower by 19.3 %. Exports were at 28,113 units.
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The company’s total expenditure for the first quarter of FY2020 went down by around 6 % to Rs 18,645 crore, compared to the total expense of Rs 19,848 crore spent during the same period last year. Within this, employee benefit expense increased by 12.27 % to Rs 859 crore, while depreciation and amortisation expense jumped to Rs 918 crore from Rs 719 crore during the same period. This affected the company’s consolidated net profit which stood at Rs 1,376.8 crore, a decline of 31.6 %, compared to Rs 2,015.1 crore from the same period previous year.
