Maruti Suzuki skids after dismal Q1 performance

Maruti Suzuki India fell 1.98% to Rs 6162.95 after the car major reported net loss of Rs 249.4 crore in Q1 June 2020 as against net profit of Rs 1435.5 crore in Q1 June 2019.

The result was impacted by significantly lower sales volume due to COVID-19 pandemic related disruptions. The impact was partially off-set by lower operating expenses and higher fair-value gain on the invested surplus.

Net sales tumbled 80.4% on a year-on-year basis to Rs 3,677.50 crore during the quarter. Sales volume declined 81% to 76,599 units in Q1 FY21 from 402,594 units in Q1 FY20.

The company reported a negative operating EBIT of Rs 1646.70 crore with a negative operating EBIT margin of 44.8% in Q1 June 2020.

Pre-tax loss in the first quarter stood at Rs 345.7 crore compared with pre-tax profit of Rs 1910.9 crore in the corresponding period last year.

The company sold a total of 76,599 vehicles during the quarter. Sales in the domestic market stood at 67,027 units. Exports were at 9,572 units.

On a consolidated basis, Maruti posted a net loss of Rs 266.90 crore in Q1 FY21 as against net profit of Rs 1376.3 crore in Q1 FY20. Net sales slumped 80.4% to Rs 3679 crore in Q1 June 2020 over Q1 June 2019.

"Owing to an unprecedented global pandemic of COVID-19, it was a unique 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. Production and sales started in a very small way in the month of May. 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", the auto maker said in a statement.

Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).

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