Maruti's Q2FY22 profit tanks 65 pc y-o-y; revenue improves 10 pc to Rs 20,539 crore
Gurgaon/IBNS: India’s largest passenger vehicle manufacturer, Maruti Suzuki India Limited (MSIL), announced its results on Wednesday for the quarter ended September 30.
The company declared a standalone profit after tax of Rs 475 crore for q2fy22, 65 percent lower than Rs 1,372 crore reported in the year-ago period.
On a sequential basis, profit rose marginally by 7 percent from Rs 441 crore compared to the June-21 quarter.
There was an improvement in the company's standalone revenues from operations by 10 percent to Rs 20,539 crore for the second quarter, against Rs 18,745 crore registered during the same period last year.
On a sequential basis, the revenues jumped 16 percent from Rs 17,771 crore.
Global chip shortage due to Covid-19 impacted production and consequently lowered volumes and margins came under pressure due to high commodity prices.
The company had to suspend the production of approximately 116,000 vehicles owing to the electronics component shortage. The impact was more severe for domestic models.
The pending orders at the end of the September quarter stand at more than 200,000 units.
Further, the quarter also witnessed a steep rise in the prices of inputs like steel, aluminium, and precious metals within a span of one year.
The company made maximum efforts to offset the input cost increase through cost reduction and ensured minimum impact to customers by increasing car prices.
Operating EBIT for the Septembers quarter declined 92 percent to Rs 99 crore against Rs 1,168 crore recorded the previous year.
On a sequential basis, however, the operating EBIT jumped 27 percent from Rs 78 crore reported in last quarter.