new Delhi : Maruti Suzuki, the country's largest carmaker, lost profits 27 percent in the first quarter of the financial year 2019-20. The company has a profit of Rs 1,435 crore annually. At the same time, Maruti had a profit of 1975 crores last year. Maruti's profits also declined on quarter-on-quarter basis. In the last quarter, the company's profits were Rs. 1795 crores. According to Maruti, sales volumes have been affected due to weakening of the sales volume.
Big drop in volume
On a year-on-year basis, the volume of Maruti Suzuki declined by 18 per cent to 4,02,594 units. At the same time, volume decreased by 12 percent on quarterly basis. During the fourth quarter of fiscal year ie January-March, the company had sold a total of 4,58, 479 units.
Earnings fall also
In the first quarter of the financial year 2019-20, Maruti's earnings fell by 14 per cent to Rs 19720 crore annually. At the same time, the company's income in the financial year 2018-19 was Rs 22,459 crore. In the June quarter, Maruti's EBITDA has decreased from Rs 3351 crores to Rs 2048 crores. Talking about EBITDA margins, it has reduced to 10.4%.
According to Maruti Suzuki India, there has been an impact on profits due to sales promotion, depreciation and low capacity utilization. At the same time, there was not much loss due to ad spending cuts, cast reductions, steady prices of commodity and strengthening of rupee.