Fueled by strong demand from the rural sector, Maruti Suzuki reported a net profit of 1 percent for the period between July and September, with demand picking up with the sale of 391,130 vehicles in the second quarter of fiscal 2021.
Maruti Suzuki market share stands at 49%, up 1.1% year-on-year
Maruti Suzuki India Ltd. announced its financial results for the second quarter of fiscal 2021 and the company announced a growth in net income of 1% to ₹ 1,371.6 crore for the period July to September 2020. This is about ‘an important update for the company considering it posted a loss for the first quarter of the current fiscal year ending in June 2020. Maruti Suzuki had reported a profit of ₹ 1,358.60 crore for the second quarter of the year. ‘fiscal 2020, when the automotive industry struggled with an overall low buying sentiment.
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In a statement, Maruti Suzuki said: “Increased sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by higher commodity prices and unfavorable currency movements “.
Operating profit for the second quarter of fiscal 2021 was ₹ 1,167.7 crore for India’s largest automaker, growing 71.7% over same period last year . Between July and September 2020, Maruti Suzuki sold 391,130 vehicles, registering an increase of 16.2% compared to the same quarter in the last fiscal year.
Domestic sales amounted to 370,619 units, registering a growth of 18.6 percent, while exports stood at 22,511 units, a decrease of 12.7 percent. Maruti Suzuki recorded net sales of 17,689.3 crore, up 9.7 percent from the same period a year earlier.
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Additionally, Maruti Suzuki shared that around 62% of its demand came from hatchbacks. The rural market further contributed to the brand’s overall recovery with a positive summer season which helped the agro-economy to develop in the rural sectors. The rural market share also increased to 41 percent, from 38.6 percent in the same period last year. Maruti Suzuki’s overall market share stands at 49%, up 1.1% year-on-year.
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