The country’s largest car maker Maruti Suzuki India on Wednesday reported a 27.77 per cent decline in consolidated net profit at Rs 1,322.3 crore in the quarter ended March 2020, hit by lower sales and an increase in expenses. The company had logged a net profit of Rs 1,830.8 crore in the January-March period of 2018-19.
Net sales during the quarter declined to Rs 18,207.7 crore against Rs 21,473.1 crore in the year-ago period.
Total car sales of the company during the fourth quarter declined 16 per cent to 3,85,025 units over the same period of 2018-19.
Maruti will start production at its Gurgaon plant from May 18, while the Gujarat plant will continue to be shut because of the high number of Covid-19 cases in the state, chairman R.C. Bhargava said. The Manesar plant started production on Tuesday.
“Production uncertainties will continue as component supplies are uncertain. The market itself is uncertain. About a third of our dealers have opened and 60 per cent of them are in rural areas. The remaining 2,000 dealers will operate as it becomes feasible for them. But market enquiries are on, we have had 5,000 bookings digitally with 2,300 car deliveries post-Covid.
Asked if the company’s cash reserves will be used to help out distressed vendors and dealers, the chairman said: “Till now there has been no such specific requests.”
The Maruti board on Wednesday has approved the supply of a derivative of compact SUV Vitara Brezza to Toyota Kirloskar Motor, which will then sell the vehicle under its own brand name.
