Maruti Suzuki huge Drop in profit and Sale in 2nd Quarter results

On 24th Oct19 Indian biggest car maker Maruti Suzuki declar July-September 2019 (Quarter 2) and April-September 2019-20 (Haft Yearly) results.

All automobiles show decline in the sale. The main reason is the BS6 Implementation which cost high to company, more money invested for promotion,less sale and many more.

Sale Report

MSIL Company sold a total of 338,320 vehicles during the 2nd Quarter and it is  lower by 30.2% compared  perviou year 18-19. In total Sales the domestic sale was 312,519 units and it is lower by 31% .

MSIL registered Net Sales of Rs. 161,204 MN which is lower by 25 percent as compared to the last year.

Pofite Reports

Also there is hige drop in the Net profit for the 2nd Quarter and report at Rs. 13,586 MN which is lower by 39 percent as compared to last year. As per Maruti reason for lower profits are lower sales volume, higher sales promotion expenses and higher depreciation expenses, partially offset by cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate.

Sale Report Apr to Sep19.

The MSIL sold a total of 740,911 vehicles during the First 6 month (Apr-Sep) which is lower by 24% as compared to the same period previous year 18-19. Sales in the domestic market reports at 687,000 units, lower by 25.%. Exports were at 53,911 units. During same period Net Sales of Rs. 348,556 million which is lower by 19.6% compared to the same period previous year.

As the October-19 is the festival season for Indians and that may work as catalysts to increase the slow rate of growth in automotive industries.In all 12 months Diwali month is the highest sale month reported every time. Now we have to check just after one week what will be the results.