Maruti Suzuki, the country’s top car maker has posted a net loss of INR 249 crores. This is the first time the company is reporting a loss, since being listed in 2003. Sales and production were terribly hit by the COVID-19 induced lockdown. A large part of the quarter had zero production and zero sales. This is a result of factories and showrooms closed due to lockdown.
As per statement issued by Maruti Suzuki, the production in the whole Quarter was equivalent to just about two weeks’ of regular working. Production at the plant was resumed in May, exercising highest safety precautions to ensure safety and wellbeing of all employees. Showrooms also began operating with highest possible safety precautions to ensure safety of associates and customers.
Highlights of Quarter 1(April-June), FY2020-21
The Company sold a total of 76,599 vehicles during the Quarter, which is much lower than the 402,594 units sold in the same quarter last fiscal. Sales in the domestic market stood at 67,027 units, much lower compared to 374,481 units sold during the same period last year. Exports were at 9,572 units whereas the export was at 28,113 for the same quarter during last fiscal.
Net sales stood at INR 3,677.5 crore, in comparison to Rs 18,735.2 crore during the same period last year.
The net loss reported was partially off-set by lower operating expenses and higher fair-value gain on the invested surplus, the company said in a statement.
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