Maruti Suzuki Q1 results: Firm reports net loss of Rs 249.40 crore
The country’s largest carmaker Maruti Suzuki Wednesday reported a loss of Rs 249.4 crore for the first quarter ended June 30, 2020 due to weak sales on back of the Covid-induced lockdown.
The company had posted net profit of Rs 1435.50 crore in the corresponding period of the last financial year. The net loss recorded last quarter was partially off-set by lower operating expenses and higher fair-value gain on the invested surplus.
Total revenues from operations during the period under review stood at Rs 4106.50 crore as against Rs 19719.80 crore registered in the year-ago period. Total expenses last quarter too declined to Rs 5770.50 crore compared to Rs 18645.3 crore recorded in the same 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”, the company said in a statement.
Production and sales started in a very small way in the month of May. “The company’s first priority was the health, safety and well being of all employees and associates across the value chain including its customers. Hence with carefully designed safety protocols, which went far beyond compliance levels, the production in the whole Quarter was equivalent to just about two weeks’ of regular working. The results have to be viewed in this context”, it added.
Maruti Suzuki sold 76,599 vehicles during the quarter under consideration. Sales in the domestic market stood at 67,027 units. Exports were at 9,572 units.