New Delhi, Automobile major Maruti Suzuki India on Tuesday reported a decline of 9.7 per cent in profit during Q4FY21.
Accordingly, the company’s net profit declined to Rs 1,166.1 crore from Rs 1,291.7 crore reported for the same period of previous fiscal.
The automobile major cited lower non-operating income owing to mark-to-market loss on invested surplus as one of the key reasons for the decline.
However, during the quarter, the company’s net sales increased by 33.6 per cent to Rs 22,958.6 crore compared to the same period previous year.
Besides, the company reported a total sales of 492,235 vehicles during the quarter which was higher by 27.8 per cent compared to the same period previous year.
Furthermore, sales in the domestic market stood at 456,707 units, growing by 26.7 per cent.
Similarly, exports were at 35,528 units, higher by 44.4 per cent.
It may be recalled that in Quarter 4 (FY 2019-20) of the previous year there was a significant decline in the sales volume largely owing to Covid-19 lockdown.
On a fiscal year basis, the company’s net profit declined by 25.1 per cent to Rs 4,229.7 crore from Rs 5,650.6 crore reported for the same period of previous fiscal.
According to the company, the decline happened on account of lower sales volume, increase in commodity prices, adverse foreign exchange movement, and lower non-operating income partially offset by lower operating expenses, and cost reduction efforts.
The company’s performance for the full year FY 2020-21 is to be seen in the context of Covid-19 related disruptions.
In terms of sales, the company sold a total of 1,457,861 vehicles during the period, lower by 6.7 per cent compared to the previous year and lower by 21.7 per cent compared to FY 2018-19.
As per the company, net sales during FY21 stood lower by 7.2 per cent to Rs 66,562.1 crore compared to that in the previous year.
In line with the financial performance of the year and considering uncertain business environment, the Board of Directors recommended a dividend of INR 45 per share (face value of INR 5 per share) for FY 2020-21.