Amid a slowdown in the automobile industry, the country's largest car-maker reported a 27.3 percent fall in net profit to Rs 1,435.50 crore for the first quarter (Q1) of the financial year 2019-20 on account of lower sales volume and higher depreciation expenses.
Maruti Suzuki's net sales for the period under review fell by 14.1 percent on a year-on-year basis to Rs 18,735.20 crore. The company sold 4,02,594 vehicles for the June-ended quarter, a 17.9 percent drop from the same quarter of the previous year.
In the domestic market, its sales fell by 19.3 percent to 3,74,481 units, while exports were 28,113 units.
The auto-maker said that higher sales promotion expenses, depreciation and low capacity utilisation hurt its numbers, however, lower advertisement expenses, cost reduction efforts, favourable exchange movement and favourable commodity prices helped.
Total revenue from operations were at Rs 19,719 for Q1, down by 14 percent from Rs 22,459 crore from April-June 2018 period.
Maruti Suzuki's EBITDA (earnings before interest, tax, depreciation and amortization) was at Rs 2,047.80 crore in the quarter, lower by 38.5 percent from Rs 3,330 crore in the same quarter a year ago. Its margin came at 10.4 percent.
Shares of the auto-maker were trading higher following the release of financial results. The stock closed 1.10 percent up at Rs 5,820 apiece on Friday.