Maruti Suzuki net profit plunges 27% to Rs 1,435 crore in Q1; outlook grim

The firm witnessed a sharp rise in overall expenses as a result of an increase in raw material and depreciation and amortisation costs

Maruti Suzuki India, the country’s largest carmaker, on Friday posted a 27.3 per cent drop in net profit for the April-June quarter amid an industry-wide slowdown in demand, even as it beat analysts’ estimates. The company reported a net profit of Rs 1,435 crore in Q1FY20, compared to Rs 1,975 crore in the year-ago period.

In a post-results call with analysts, the management said it was not sure when demand would pick up, and that they would be careful not to dump excess inventories on the dealers. In view of the slowdown, Maruti had undertaken a review of its distribution channels,