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Maruti Suzuki Q1 Results: Company reports Rs 249 crores loss!

Maruti Suzuki Q1 Results: Company reports Rs 249 crores loss!

Last updated: 29 Jul, 2020 | 11:56 am

Maruti Suzuki Q1 Results: Company reports Rs 249 crores loss!
  • Lockdown effects: Owing to the fact that a large part of the quarter was under lockdown and zero sales in the month of April, sales volume for Q1FY21 stood at 76,599 as compared to 385,025 in QYFY20 and 402,594 in Q1FY20. Maruti reported a net loss of Rs 249.4 crores for Q1FY21 against a profit of Rs 1,435.5 crore a year ago. Net revenue plunged to Rs 3,677.5 crore, from Rs 18,735.2 crore a year ago.
  • Breakdown of sales: The fall in the number of units has been witnesses equally in terms of geographies i.e domestic and exports and as well as across different segments. Domestic sales for the period were 67,027 which is 87.5% of total sales, exports, on the other hand, were at 9,572 contributing 12.5% to total sales.

June quarter has been the one to forget for the automobile sector especially in the cars segment, with April having zero auto sales, Maruti has reported its first-ever loss since listing.The automobile sector which was already having a tough time for the past few years has been severely hit by the COVID crisis. As the company said the quarter was just equivalent to two weeks of regular working. While Maruti may not get a huge quantum of benefit as two-wheeler companies are getting because of the rising consumer preference for personal transport amid the coronavirus crisis, there might be some benefit in the Mini and compact segment which is the highest contributor to sales and also the companies forte segment. The outlook for India’s economy is gloomy, with a fall in disposable income of the people, rising unemployment it is a long road ahead for carmakers to reach to pre-covid sales level. 

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