Maruti Suzuki Q2 profit drops 9.8% to Rs 2,240 crore

New Delhi: The country's largest carmaker Maruti Suzuki India (MSI) on Thursday reported 9.8 percent drop in standalone net profit to Rs 2,240 crore for the second quarter ended September 30, 2018-19.

The company sold a total of 484,848 vehicles during the quarter, lower by 1.5 percent over the same period of the previous year. Sales in the domestic market stood at 455,400 units and exports were at 29,448 units, MSI said in a regulatory filing.

During the second quarter of the current fiscal, MSI registered net sales of Rs 21,551.9 crore, a growth of 0.5 percent over the same period last year.

MSI said, the operating profit was Rs 2,710 crore, lower by 9.5 percent over the same period previous year on account of increase in commodity prices, adverse foreign exchange movement and higher sales promotion expenses partially offset by cost reduction efforts.

The company sold a total of 975,327 vehicles in H1, a growth of 10 percent over the same period of the previous year. Sales in the domestic market stood at 919,240 units and exports were at 56,087 units.

During the period, the company registered Net Sales of Rs.433,626 million, up 12.4 percent over the same period previous year. The operating profit was Rs 5,341 crore, a growth of 15.1 per cent over the same period previous year on account of higher sales volume and cost reduction efforts partially offset by increase in commodity prices and adverse foreign exchange movement.

Net profit in H1 (2018-19) stood at Rs 4,215 crore, up 4.3 percent compared to the same period last year. While the operating profit increased by 15.1 percent, the net profit increased by 4.3 percent due to lower non-operating income due to mark-to-market impact on the invested surplus, compared to same period last year, MSI said.