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The country’s largest carmaker Maruti Suzuki India on Wednesday posted a year-on-year decline of 27.7% in consolidated net profit to 1,322.3 crore for the fourth quarter ended March 2020,on account of lower sales volume and higher promotion expenses. The company had posted a net profit of 1,830.8 crore in the January March 2019 quarter. Revenue from operations stood at 17,187.3 crore, down 20.6% from the year ago period. The company said it sold a total of 3,85,025 vehicles during the fourth quarter, lower by 16% over the same period previous year. In the domestic market, the sales were down 16% to 3,60,428 vehicles, while exports fell nearly 17% to 24,597 vehicles, the company said. While it has cut its planned capital expenditure to 2,700 crores for the current year from the 4,000 crores in 201920, its chairman R. C. Bhargava said for the long-term, the company is confident of growth prospects in the country. Talking to reporters via video conferencing, Mr. Bhargava added that currently there were so many uncertainties that there was no point speculating when demand will recover. “...these relate to production, supply, demand, financing, affordability... a whole number of factors will go into it. How the economy is going to recover. Car sales can’t happen in big numbers if the GDP is down to 2% or 1%.” Asked if the company is planning to cut employee salaries, Mr. Bhargava answered in the negative. Further, he added though current safety protocols at the factories were ‘resulting in little bit lower productivity and lower output and will have an impact in increasing the overhead costs of production,’ Maruti Suzuki at present had no plans of passing on these costs to the customers. Amid calls from industry for a GST rate cut on automobiles, Mr. Bhargava said now may not be the right time for it. “... at least for the next month or two months, the production volume of all automobile makers is going to be very low. “And, at this point, the GST cut won’t make sense.
Answer the following questions from the above passage-
Q1. Which company is the largest carmaker in India?
Q2. How was the company’s performance during the fourth quarter?
Q3. What did the chairman said for the long term about the company?
Q4. What was the impact of current safety protocols at the factories on productivity?
Q5. Amid calls from industry for a GST rate cut on automobiles, why Mr. Bhargava said that GST cut won't make sense?
By: bhavesh kumar singh ProfileResourcesReport error
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