Maruti Q3 net profit down 48% to ₹1,041 crore

Maruti Suzuki India (MSIL) on Tuesday reported a consolidated net profit of ₹1,041 crore for the third quarter ending December, a year-on-year (y-o-y) decline of 48 per cent as compared with ₹1,997 crore in the corresponding period previous year.

Revenue of the company during the period also declined by more than 2 per cent y-o-y to ₹.23,581 crore as against ₹24,165 crore in October-December quarter in 2020.

Shortage of electronic components

“The company sold a total of 4,30,668 units during the quarter, lower than 4,95,897 units in the same period, previous year. Production was constrained by a global shortage in the supply of electronic components because of which an estimated 90,000 units could not be produced,” the company said in a statement.

In the domestic market, the sales stood at 3,65,673 units in the quarter, against 4,67,369 units in the third quarter previous fiscal year.

“There was no lack of demand as the company had more than 2,40,000 pending customer orders at the end of the quarter. Though still unpredictable, the electronics supply situation is improving gradually. The company hopes to increase production in the fourth quarter, though it would not reach full capacity,” MSIL said.

It further added that this financial year, so far has been unique owing to an unprecedented global crisis caused by the pandemic and electronic component shortages. In the first quarter, the performance of the company was significantly affected due to Covid-19-related disruptions and lockdowns. In the second and third quarters, the performance of the company was impacted due to electronic component shortages, it added.

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