The country’s largest automaker, Maruti Suzuki, on Wednesday reported stand-alone net profit of Rs 475 crore in the quarter ended September 2020, marking a 65% drop from Rs 1,371.60 crore during the same period last year. The sharp drop in profits was driven by unfavorable raw material prices and lower sales volume due to shortages of electronic components, leading to lower capacity utilization, the company said.
Maruti Suzuki’s operating income grew nearly 10% annually to Rs 20,539 crore and its total expenses jumped 16% to Rs 20,462 crore.
During the quarter, Maruti Suzuki sold 3,79,541 units compared to 3,93,130 units sold during the same period last year.
For the first half of the current fiscal year, Maruti Suzuki recorded sales of 7,335,155 units, the company said in an exchange document.
Maruti Suzuki shares were trading up 1.5% to Rs 7,404 after the results were announced.