Maruti Suzuki India today announced that its net profit declined by 2.9 percent (Rs 7,500 crore) in FY2019 as against the same period last year. This in spite the fact that its overall sales went up by 4.7 percent (1,862,449 units) in the same fiscal period. The company’s net sales stood at Rs 83,026 crore in FY2019, a YoY growth of 6.3 percent.

Maruti Suzuki India attributes its drop in profits to the adverse foreign exchange rates and rise in commodity prices. The second SMG plant in Gujarat was commissioned leading to a higher depreciation expense. The company claims that the overall market was slow and had to be supported by higher sales promotion expenses. This was partially offset by cost reduction efforts.

In FY2019 Maruti Suzuki’s domestic sales grew by 6.1 percent, this comprised 1,729,826 passenger vehicles, a growth of 5.3 percent and 23,874 units of LCV, a growth of 138 percent over previous year. Exports were at 108,749 units.

For the last quarter of FY2019, the company sold 428,863 units in the domestic market, a growth of 0.4 percent, which includes 421,383 units in the passenger vehicle segment, a decline of 0.4 percent and 7,480 units of LCV, a growth of 83.6 percent over previous year. Exports were at 29,616 units. Total Sales in the quarter stood at 458,479 vehicles, a decline of 0.7 percent.

For Q4 the net sales revenue was Rs 20,737 crore, a YoY growth of 0.7 percent,  PAT came at Rs 1,795 crore, a YoY decline of 4.6 percent.

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