Maruti Suzuki posts 39% YoY fall in Q2 profit at Rs 1,359 crore; still beats Street estimates – Economic Times, The Times of India

Maruti Suzuki on Thursday posted 39. 35 per cent year-on-year (YoY) decline in net profit at Rs 1, 358. 60 crore for the quarter ended September 2019. It had posted a net profit of Rs 2, 240 .4 crore in the corresponding quarter last year.

Analysts in an ETNow poll had projected a net profit of Rs 950 crore.

Net sales of the company dropped 22. (per cent YoY to Rs) , 120. 40 crore in Q2FY 20. Sales volume fell 30 .2 per cent YoY to 338317 units during the quarter under review.

Operating EBIT plunged 74 .9 per cent YoY to Rs 680 crore, the company said in a BSE filing.

This year, the automobile industry has seen a significant decline in sales owing to several factors, Maruti said.

“One of the main factors is increase in the cost of acquisition of the car due to various reasons coming together like implementation of more stringent safety and emission ( BS6) norms, increase in vehicle insurance expenses and hike in road taxes in many states. Along with this, the lower availability of finance and increased down payment requirement have affected the affordability of customers to own cars, “it said.