Maruti Suzuki Maruti Suzuki records loss of Rs 249.4 crore in Q1FY21
Mumbai/IBNS: Automobile manufacturer Maruti Suzuki on Wednesday declared a net loss of Rs 249.4 crore for the quarter ended June 2020.
The company cited falling revenue and operating loss mainly due to steep decline in sales triggered by Covid-19 pandemic for the drop in its profits.
However, the loss incurred by India's largest automobile manufacturer is much lower than anticipated, said media reports. The company said it was able to avoid a bigger loss due to lower operating costs and high returns from invested surplus.
Profit in the quarter ending June plummeted to Rs 1,435.5 crore while it was Rs 1,291.7 crore in March quarter 2020.
Revenue from operations fell sharply by 79.2 percent to Rs 4,106.5 crore compared to the same period last year.
"Operations and financial results for the quarter ended June 2020 have been adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by the Government of India due to which the operations were suspended for part of the quarter and gradually resumed with requisite precautions. The results for the quarter are, therefore, not comparable with those for the previous quarters," said Maruti in its BSE filing.
In the June quarter, which was shadowed by the countrywide Covid-19 lockdown, Maruti managed to sell 76,599 vehicles, recording a 81 per cent fall from 4,02,600 vehicles sold in corresponding period last fiscal.
"Owing to the global pandemic of COVID-19, it was an unprecedented quarter in the company's history wherein a large part of the quarter had zero production and zero sales in compliance with a lockdown stipulated by the government. Production and sales started in a very small way in the month of May," company said.
Its earnings before interest, tax, depreciation and amortisation (EBIDTA) loss stood at Rs 863.4 crore while it had recorded an EBITDA at Rs 2,047.8 crore for June quarter 2019.
Maruti said its income rose by 57.6 percent year-on-year to Rs 1,318.3 crore in June quarter 2020 owing to higher fair-value gain on the invested surplus. Its total expenses for the quarter dropped by 69.1 per cent year-on-year to Rs 5,770.5 crore.
Maruti Suzuki stocks traded at Rs 6,192.00, down 1.45 per cent when BSE closed for the day.
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