INSUBCONTINENT EXCLUSIVE:
Maruti Suzuki said its revenue stood at Rs 16,120 crore in the second quarter of current financial year.Months of slowing car sales at the
country's largest carmaker Maruti Suzuki has hit the profit growth of the company
Maruti Suzuki on Thursday reported a 39 per cent drop in its net profit to Rs 1,359 crore in the quarter ended September 30
In a regulatory filing during market hours, Maruti Suzuki said its revenue stood at Rs 16,120 crore in the second quarter of current
financial year, marking a decline of 25 per cent over the corresponding period a year ago
Shares fell more than 2 per cent after the earnings announcement before trimming most of those losses by the end of the session.Seventeen
analysts had on an average expected the company to post a profit of Rs 1,076 crore for the July-September period, news agency Reuters
reported citing Refinitiv data.Maruti Suzuki reported its eighth straight monthly drop in vehicle sales and in August cut the number of its
temporary workers to cope with the slowdown in auto sales.The company sold a total of 338,317 vehicles during the quarter - down 30.2 per
cent compared to the year-ago period
Sales in the domestic market fell 31.4 per cent to 312,519 units while exports stood at 25,798 units, Maruti Suzuki said in a press
release.The results have to be viewed in the context of exceptionally weak demand environment, Maruti Suzuki said.This year, the automobile
industry has seen a significant decline in sales owing to several factors
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, Maruti Suzuki
said.Lower availability of finance and increased down payment requirement have affected the affordability of customers to own cars, it
added.Maruti Suzuki shares fell as much as 2.21 per cent to Rs 7,275.00 apiece on the BSE during the session before settling at Rs 7,390.40,
down 0.66 per cent compared with the previous close
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