JOIN USMaruti Suzuki’s net profit takes 65 per cent hit
Maruti Suzuki’s net profit declined 65.34 per year-on-year cent from Rs 1371.60 crore in Q2 FY 2020-21 to Rs 475.3 crore in Q2 FY 2021-22.
During Q2 FY 2021-22, the Maruti registered net sales of Rs 19297.80 crore compared to net sales of Rs 17689.30 crore in Q2 FY 2020-21.
The reason, the company said, was that the 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," Maruti Suzuki said in a statement.
However, there was a silver lining. “The most notable aspect this year was a record growth in exports. 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,” the company said.
Maruti sold a total of 379,541 units during the Quarter constrained by a global shortage in the supply of electronic components. Sales in the domestic market stood at 320,133 units. Exports were at 59,408 units, the highest ever in any quarter.
During the same period previous year (Q2 FY 2020-21), the Company clocked total sales of 393,130 units including 370,619 units in domestic market and 22,511 units in the export market.
“An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The Company had more than 200,000 pending customer orders at the end of the quarter for which the company is making all efforts to expedite deliveries," the company added.
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