Today, Maruti Suzuki reported a fall of 4.6% year-on-year to Rs 1,795 crore. India’s largest car-making company has to face this fall in profit due to a slowdown in the auto industry. The company itself is forecasting a lower sales growth for 2019-20. The company spokesperson said “This (FY19) was a difficult year because of adverse foreign exchange rates and increase in commodity prices. The overall market was slow and had to be supported by higher sales promotion expenses.”
Responding to the Quarter 4 result, shares of Maruti Suzuki fell 2.2% to Rs 6,868.05. The company intends to stop manufacturing light commercial diesel vehicles and stop selling the same from April next year. With all these facts, the profit might slide down but if you are holding shares of the company then wait for a while because the slowdown is at macro-level and the company will bounce back with improvement in the overall economy.