Maruti Suzuki India has reported a standalone net loss of Rs 249.4 crore for the quarter ended June 30 (Q1). The company had posted a net profit or Rs 1435.5 crore for the corresponding quarter last year.
The automaker is posting its first quarterly loss since listing in 2003. The results still beat Street estimates as heavy losses were expected due to the nationwide lockdown.
|Maruti Suzuki India||Q1 FY21||Q4 FY20||Q1 FY20||QoQ%||YoY%|
Maruti Suzuki India has been the undisputed king of passenger automobiles in India for many years. For the calendar year 2019, the automaker held a 51% share in new car sales.
The auto major blamed the disruption caused by the COVID-19 pandemic for the huge drop in volumes. Some key takeaways from the corporate filing were :
- Sales volume stood at 76,599 units in for the quarter, compared to 3,85,025 units in the previous quarter.
- Net sales value stood at Rs 3,677 crore in the quarter, compared to Rs 17185.7 crore in the previous quarter.
- Lower operating expenses and higher fair value gains on invested surplus cash
- Zero production and sales in April, started in a small way in May
- Production in the whole quarter was equivalent to 2 weeks of regular working
- Sales in the domestic market stood at 67,027 units, while exports were at 9,572 units.
The auto sector has been in a constant decline for the past few quarters, and COVID-19 seems to have broken it altogether. Maruti Suzuki India being the largest company in the segment, surely has the resources to overcome the slowdown. Being one of the first companies to actively restart sales and marketing will also help the manufacturer push its sales numbers. The Indian automotive industry is predicted to take 3-4 years to return to its peak levels, and Maruti Suzuki India looks better positioned than most to reach that level.