Maruti Suzuki Q1 posts ₹249-cr net loss, first in over a decade

Ronendra Singh New Delhi | Updated on July 29, 2020

First-ever quarterly loss since 2003 as Covid-19 takes a toll

Impacted by Covid-19, the country's largest car maker Maruti Suzuki India (MSIL) on Wednesday reported a consolidated net loss of ₹249 crore for the first quarter ended June 30, compared to  ₹1,435 crore net profit recorded in the corresponding period last year.

This is the first-ever quarterly loss for the company after it was listed in July 2003. 

Revenue from operations

 Revenue from operations declined 80 per cent year-on-year to ₹3,677 crore (₹18,738 crore).

“Owing to the global pandemic, 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 the 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, it said. 

The company sold a total of 76,599 vehicles during the quarter, against 4,02,594 units in same quarter last year. 

Sales in the domestic market stood at 67,027 units, down 82 per cent compared to 3,74,481 units in the corresponding period last year.

“The company’s first priority was the health, safety and wellbeing 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,” MSIL said. 

Decline in numbers

 MSIL’s balance sheet also highlighted that the possible effects of decline in the financial numbers were mostly related to carrying amounts of property, plant and equipment, inventories, receivables and other current assets. 

Shares of MSIL closed at ₹6,185.60 apiece on the BSE on Wednesday, down 1.62 per cent from the previous close.

Published on July 29, 2020

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