The report of the first quarter of the current financial year for the auto sector has not come up with good news. The country's leading automobile company Maruti Suzuki has suffered a major setback this quarter. In the first quarter of the current fiscal year 2019-20, the company's profits were 27.3 percent less than last year.
In the first quarter of fiscal year 2018-19, compared to Rs 1,975.3 crore, Maruti Suzuki's profit declined by 27.3 percent to Rs 1,435.5 crore in the same period of 2019-20. The company said that net profit was declining due to decrease in sales and increase in devaluation costs.
The company's sales fell 14.1 percent to Rs 18,735.2 crore in the first quarter of the current financial year from Rs 21,810.7 crore in the first quarter of last year. In the statement, Maruti Suzuki said in a statement: "During the quarter, sales of 4,02,594 vehicles, which is 17.9 percent lower than the same period last year, were lower than the same period last year," Maruti Suzuki said in a statement.
According to the company, Maruti Suzuki sold 3,74,481 units in the comparable quarter in the domestic market, down 19.3 percent compared to the same period last year. In the compact category, sales of new WagonR, Celerio, Ignis, Swift, Baleno and Desire, including other cars, declined by 12.1 percent to 62,897 units as against 71,570 units in the same month last year.
However, after the announcement of the results, Maruti got a boost in its share price. Earlier on Thursday, Tata Motors said that in the first quarter of the current financial year, it had lost a loss of Rs 3,679.66 crore, which is twice as compared to the same period last year. The company had a loss of Rs 1,902.37 crore in the corresponding quarter last year.
