Maruti Suzuki slips on weak June sales

The car major said its total sales slumped 54% to 57,428 units in June 2020 as against 124,708 units in June 2019.

Total domestic sales tanked 53.7% to 53,139 units in June 2020 from 114,861 units in June 2019. Exports dropped 56.64% to 4,289 units in June 2020 from 9,847 units in June 2019.

The car major's total sales jumped 210% in June 2020 from 18,539 units registered in May 2020.

The company said that sales performance during June 2020 and Q1 FY21 should be seen in the context of the ongoing COVID-19 pandemic, lockdowns and restrictions required for safety. Production across plants is being progressively increased consistent with maximum efforts to ensure safety and subject to the availability of employees.

Maruti Suzuki India's profit after tax (PAT) fell 28.1% to Rs 1291.70 crore on a 17.1% decline in net sales to Rs 17,185.70 crore in Q4 March 2020 (Q4 FY20) over Q4 March 2019 (Q4 FY19). The auto maker attributed the decline in profitability to lower capacity utilisation and higher sales promotion expense, partially offset by lower operating expenses, cost reduction efforts and reduction in corporate tax rate.

Shares of Maruti Suzuki India declined 0.81% to Rs 5,792 on BSE. The firm is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).

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