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Maruti Suzuki Q2 results: Net profit plummets 65% to Rs 475.3 cr, net sales up 9%

Maruti Suzuki Q2 results: Net profit plummets 65% to Rs 475.3 cr, net sales up 9%

An estimated 1,16,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models, the company said.

Sales volume declined by over 3 per cent to 3,79,541 units from 3,93,130 units in the year-ago quarter. Sales volume declined by over 3 per cent to 3,79,541 units from 3,93,130 units in the year-ago quarter.

Maruti Suzuki India Ltd on Wednesday reported a steep 65 per cent year-on-year (YoY) decline in its net profit for July-September at Rs 475.3 crore as the global shortage in the supply of electronic components and higher commodity prices hit the company hard. The profit was higher than Rs 440.8 crore recorded in the preceding June quarter.
 
The company's net sales rose 9 per cent to Rs 19,297.8 crore during the quarter under review. However, sales volume declined by over 3 per cent to 3,79,541 units from 3,93,130 units in the year-ago quarter, constrained by the shortage of electronic components.
 
While sales in the domestic market stood at 3,20,133 units, exports were at 59,408 units. "Export sales were the highest ever in the company's history and the figures of the first half this year exceeded the full year sales of last year," Maruti Suzuki said in a release.
 
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The company had sold 3,53,614 units in the preceding April-June quarter. "An estimated 1,16,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The company had more than 2,00,000 pending customer orders at the end of the quarter for which the company is making all efforts to expedite deliveries," Maruti Suzuki said.
 
The car maker said that the September quarter was also marked by an unprecedented increase in the prices of commodities like steel, aluminium and precious metals within a span of one year. "The company made maximum efforts to absorb input cost increases offsetting them through cost reduction and passed on minimum impact to customers by way of car price increase," it said.
 
The company attributed adverse commodity prices and lower volume due to electronic component shortages as the negative factors hitting its margin, while its cost reduction efforts and the increase in selling prices were the positive factors during the quarter, it said.
 
Shares of Maruti Suzuki India were trading 1.14 per cent higher at Rs 7,379.20 on the BSE after the announcement of results on Wednesday.

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Published on: Oct 27, 2021, 2:09 PM IST
Posted by: Vinay Rai, Oct 27, 2021, 2:05 PM IST