Maruti Suzuki recorded a 28.1% drop in profits for the fourth quarter of fiscal year 2019-20 of 1,291.70 crore rupees, compared to 1,564.80 crore rupees in the same period l 39; last year. The company's total turnover for the same period was 1.71.85.70 crores, a decrease of 17.1% from the 19,649.10 crores recorded in the same quarter of the year. ;last year. The company's fourth quarter total sales were 3.60,428 units, 16% lower, while its exports were 24,597 units, down 16.9%. According to Maruti, the drop in profits is due to the drop in sales volume, the increase in sales promotion expenses, partially offset by the decrease in operating expenses, cost reduction efforts and the reduction of corporate tax rate.
Also read: Maruti Suzuki to resume operations at its Manesar plant from May 12, 2020
For the full year, the company recorded a 24.7% decrease in annual net profit to ₹ 5,650.60 crore from ₹ 7,500.60 crore ago a year. Its total turnover was 71,690.40 crores dollars, which represents a decrease of 13.7% compared to the crores of 83,026.50 a year ago. In the domestic market, Maruti sold 14.61,126 vehicles, a decrease of 16.7%, while exports amounted to 1.02,171 units, 6% lower. According to the company, its annual sales remained moderate due to lower sales volumes, higher sales promotion expenses and higher depreciation, partially offset by lower operating expenses, cost reduction efforts, increased fair value gains on invested surplus and reduction in corporate tax rate.
Also read: Maruti Suzuki records no national sales for the first time
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Maruti Suzuki had no sales in April 2020.
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Overall, fiscal year 2019-2020 was a period of slowdown in sales and a prolonged downturn for the entire automotive industry, as all major automakers posted negative sales throughout the year. In addition, fiscal year 2020-21 started on a fairly regressive note in which all car manufacturers, including Maruti Suzuki, for the first time posted zero sales as the entire nation was blocked to prevent the spread of the new Coronavirus. That said, Maruti Suzuki has partially started operations and has already received 5,000 online bookings. It has delivered 2,300 cars since the resumption of sales operations and 1,900 workshops are actively operating. The company also confirmed that it will cut entertainment and advertising costs, ensuring that there is no cut in wages for its employees.
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