Maruti Suzuki profits fall by 39.3% for the second quarter
- Maruti Suzuki has announced its Q2 FY20 earnings
- Maruti profits fall by 39.3% as compared to the same quarter in the previous year.
AdvertisementIndia’s largest car manufacturer Maruti Suzuki’s second quarter profits fell by 39.3% to ₹13,586 million from ₹22,404 million in the same quarter last year.
Its total revenue from operations stood at ₹169,853 million.
As the quarter reports came in, the shares of Maruti Suzuki fell by 1.68%.
In the past one month, Maruti Suzuki's share price has increased as the public sentiment has expected better results from the festive season sales.
When the last quarter results were announced on July 26, its share price gained over a percent immediately after the company’s earnings report because the performance was better than expected.
Second quarter woes
In the second quarter, its worries only worsened from the first quarter. Its sales fell by 24% in September as compared to the same month last year. It sold a total of 122,640 units during the month.
In August, it had also slashed 3,000 contractual jobs as it had cut production.
Maruti was expecting some traction as it started offering discounts across multiple car models during the the festive season.
In September, Maruti Suzuki also slashed prices to align with the government’s plans to revive demand. It reduced the price of select models like Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel by ₹5,000.
Maruti’s performance in the first quarter
As the car slowdown hit the country’s automobile segment, almost every other manufacturer saw its profits fall in the first quarter of the current financial year.
Maruti Suzuki’s first quarter sales fell 14% and profits fell by nearly twice as much, 27.3%. The total car sales for the first quarter had fallen by 17.9% as compared to the same quarter in the previous year.
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