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Q2FY21: One percent rise in Maruti Suzuki’s net profit

Automobile major Maruti Suzuki India on Thursday reported a rise of 1 per cent in its net profit for Q2FY21.

The profit after tax (PAT) for the quarter under consideration rose to Rs 1,371.6 crore.

According to the company, the net profit in second quarter of the previous year FY19-20 was higher due to mark-to-market gains on the invested surplus and lower tax provision.

“As a result of this, while the operating profit increased by 71.7 per cent over the same period previous year, the net profit increased by 1 per cent,” the company said in a statement.

Besides, the company’s net sales of Rs 17,689.3 crore, higher by 9.7 per cent compared to the same period previous year.

“The operating profit for the quarter was Rs 11,677 million, a growth of 71.7 per cent over the same period previous year on account of higher sales volume, lower sales promotion expenses, lower operating expenses and cost reduction efforts partially offset by increase in commodity prices and adverse foreign exchange movement.”

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