Hit by lower sales due to the COVID-19 pandemic, Maruti Suzuki India on Tuesday reported a 25.1 per cent year-on-year (YoY) decline in its net profit at Rs 4,229.7 crore for the fiscal year 2020-21.
The carmaker attributed the decline in net profit to lower sales volume, increase in commodity prices, adverse foreign exchange movements, and lower non-operating income, partially offset by lower operating expenses and cost reduction efforts.
The automaker's sales declined 6.7 per cent YoY to 14,57,861 vehicles during FY21 on account of the pandemic and related disruptions. Sales were lower by 21.7 per cent compared to the fiscal year 2018-19.
While domestic sales declined 6.8 per cent to 13,61,722 units, exports fell 5.9 per cent YoY to 96,139 units in FY21. Net sales stood at Rs 66,562.10 crore during the year, 7.2 per cent lower than the previous year.
For the January-March quarter, the company's net profit fell 9.7 per cent YoY to Rs 1,166.10 crore, while net sales rose 33.6 per cent to Rs 22,958 crore.
The company sold a total of 4,92,235 vehicles during the March quarter, up by 27.8 per cent compared to the same period in the previous year. The increase in sales could be attributed to lower sales in the corresponding quarter last year because of a nationwide lockdown.
Operating profit for the quarter under review stood at Rs 1,250.10 crore, a growth of 72.8 per cent over the same period in the previous year on account of higher sales volume and cost reduction efforts despite steep commodity price increases, the company said.
It attributed the improvement in operating performance to improved capacity utilisation, lower sales promotion expenses, increase in selling prices, and cost reduction efforts.
The company's board also declared an interim dividend of Rs 45 per share. Shares of Maruti Suzuki were trading 0.92 per cent lower at Rs 6,579.45 on the BSE in the afternoon trade on Tuesday.