Maruti Suzuki India, the country’s largest passenger vehicle maker, today announced its financial results for FY2019-20. The company’s net sales in FY2020 at Rs 71,690 crore are down 13.7 percent YoY. Net profit at Rs 5,650 crore is down 24.7 percent compared to the same period last year.
The carmaker says, in FY2020 it sold a total of 1,563,297 units, down 16.1 percent over FY2019. These included 1,461,126 vehicles sold in domestic (-16.7%) and 102,171 vehicles exported (-6%).
The company says the financial results are lower on account of lower sales volume, higher sales promotion expenses and higher depreciation expenses, partially offset by lower operating expenses, cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate.
During Q4 FY2019-20 Maruti Suzuki sold a total of 385,025 vehicles, lower by 16% over the same period in the previous year. This included 360,428 vehicles sold in the domestic market (-16%) and exports of 24,597 vehicles (-16.9%). This resulted in company reporting net sales of Rs 17,185 crore (-17.1% YoY) and net profit of Rs 1,291 crore, lower by 28.1 percent over the same period previous year on account of lower sales volume, higher sales promotion expenses, partially offset by lower operating expenses, cost reduction efforts and reduction in corporate tax rate.