[TusharK]

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.

[Vians]

This is expected with the kind of crazy discounts. However next year might be the most interesting year as we could see very high growth owing to low base and pent up demand.