Maruti Suzuki India reported 9.7% decline in net profit to Rs 1,166.10 crore on 33.6% increase in net sales to Rs 22,958.60 crore in Q4 FY21 over Q4 FY20.
The car major said that the fall in net profit was on account of lower non-operating income owing to mark-to-market loss on invested surplus.
The company sold a total of 492,235 vehicles during the Quarter, higher by 27.8% compared to the same period previous year.
Sales in the domestic market stood at 456,707 units, growing by 26.7%. Exports were at 35,528 units, higher by 44.4%. 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.
The operating profit for the quarter was at Rs 1,250.1 crore, a growth of 72.8% over the same period previous year on account of higher sales volume and cost reduction efforts despite steep commodity price increase.
Operating profit margin rose 120 bps to 5.4% in Q4 FY21 from 4.2% in Q4 FY20. The company said that improved capacity utilization, cost reduction efforts, lower sales promotion expenses and increase in selling prices aided margin improvement.
Maruti Suzuki India's net profit declined by 25.1% to Rs 4,229.7 crore on 7.2% fall in net sales to Rs 66,562.1 crore in the year ended 31 March 2021 as compared to the year ended 31 March 2020.
The fall in net profit was owing to 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 sold a total of 1,457,861 vehicles during the period, lower by 6.7% compared to the previous year and lower by 21.7% compared to FY 2018-19.
In FY 2020-21, the sales in the domestic market stood at 1,361,722 units, lower by 6.8% and exports were at 96,139 units, lower by 5.9% compared to the previous year.
"The results for FY'21 are not comparable with the same period previous year due to COVID-19 related disruptions," the company said in a statement.
The board of directors recommended a dividend of Rs 45 per share for FY 2020-21.
Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).
The scrip shed 0.13% to currently trade at Rs 6632.05 on the BSE.
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