Companies

Maruti Suzuki posts net profit of ₹475-crore in first quarter

Our Bureau New Delhi | Updated on July 28, 2021

Sales were hit due to Covid-related disruptions

The country’s largest passenger car maker Maruti Suzuki India (MSIL) on Wednesday reported a consolidated net profit of ₹475 crore for the first quarter ended June 30. The company had reported a loss of ₹268 crore in the corresponding quarter last year.

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The profit for the first quarter was impacted due to lower sales volume. In a statement, the company said, though commodity prices increased steeply, it continued to make efforts to reduce costs.

Its total revenue from operations stood at ₹17,776 crore during the quarter under review, compared to ₹4,111 crore in the April-June period 2020.

Vehicles sold

The company said it sold a total of 3,53,614 vehicles during the first quarter. Sales in the domestic market stood at 3,08,095 units, while exports were at 45,519 units. In the corresponding quarter last year, the company had sold 76,599 units.

However, compared to the fourth quarter ended March 31, the consolidated net profit as well total revenue from operations fell. While the net profit in the fourth quarter was ₹1,241 crore, the total revenue was at ₹24,124 crore.

The company said the key reasons for the fall were lower sales volume due to Covid-19 related disruption, lower capacity utilisation and rise in commodity prices.

However, there were some positive factors too including lower sales promotion expenses and increase in selling prices, lower advertisement expenses; and higher non-operating income, MSIL said.

Meanwhile, the Board conferred Osamu Suzuki with the title ‘Honorary Chairman’.

Shares of MSIL closed at ₹7,150.20 apiece on the BSE on Wednesday, down 1.26 per cent from the previous close.

 

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Published on July 28, 2021

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