Auto major Maruti Suzuki India on Thursday reported 1 per cent rise in net profit at Rs 1,371.6 crore in July-September quarter of the current financial year as against Rs 1,358.6 crore in the corresponding period of last fiscal. The net profit in September quarter of the previous year was higher due to mark-to-market gains on the invested surplus and lower tax provision, the company said in a regulatory filing.
During the quarter, the company registered net sales of Rs 17,689.3 crore, higher by 9.7 per cent compared to Rs 16,120.4 crore in the same period previous year.
The operating profit grew by 71.7 per cent YoY to Rs 1,167.7 crore in Q2 FY21 on account of higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by increase in commodity prices and adverse foreign exchange movement.
The company sold a total of 393,130 vehicles during the quarter, higher by 16.2 per cent compared to the same period previous year. Sales in the domestic market stood at 370,619 units, higher by 18.6 per cent, while exports were at 22,511 units, lower by 12.7 per cent.
"This performance in this financial year has been affected by the unforeseen COVID-19 pandemic. In Q1 FY21, the performance of the company was significantly affected due to COVID-19 related disruptions and lockdowns. In Q2 FY21, the performance improved on the back of some demand recovery and gradual improvement in supply conditions. Production across the company's factories and supply chain was progressively ramped up consistent with our policy of maximum safety of the people and following all prescribed protocols to ensure this," the management said on the financial performance.
Meanwhile, shares of Maruti Suzuki were trading 2.16 per cent lower at Rs 7,027.60 on the Bombay Stock Exchange.