Maruti Suzuki reported a decline in net profit by 39.4% y-o-y at Rs. 1358.6 crore in Q2FY20 in comparison to profit of Rs. 2240.4 crore in the corresponding quarter a year ago.
The profit of the automobile major declined due to lower sales volume, increased depreciation and sales promotion expenses, which the company has managed to partially offset through its cost-reduction initiatives, lowering of the corporate tax rate and higher fair value gains on invested surplus.
The revenue of India's leading 4-wheeler company declined 24% y-o-y to Rs. 16,120.4 crore while sales declined 30.2% y-o-y.
During the period, the company sold 7.40 lakh units, which is 24% less than the total sales in the corresponding period a year ago. In the domestic market, the company sold 6.87 lakh units. Additionally the company exported a total of 53,911 units.
After the announcement of results, the stock of Maruti Suzuki quoted lower by 1.07% to Rs. 7360 from its earlier close of Rs. 7439.50 on the BSE.