COVID-19: Maruti Suzuki reports first loss in almost 2 decades
The country's largest carmaker Maruti Suzuki India (MSI) on Wednesday reported standalone net loss of Rs 249.4 crore for the first quarter ended June 30, on account of lower sales due to coronavirus-led lockdown. It had posted net profit of Rs 1,435.5 crore in April-June of 2019-20, MSI said in a statement.
It was the first time since its listing in 2003 that the auto major reported a quarterly loss.
Its net sales during the period under review declined to Rs 3,677.5 crore, as compared to Rs 18,735.2 crore in the year-ago period. During the first quarter, MSI sold a total of 76,599 vehicles. Sales in the domestic market stood at 67,027 units, while exports were at 9,572 units.
The company had sold 4,02,594 units in the first quarter previous fiscal.
"Owing to the global pandemic of COVID-19, 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 a lockdown stipulated by the government," MSI said.
Production and sales started in a very small way in May, it added.
The company''s first priority was the health, safety and wellbeing of all employees and associates across the value chain, including its customers, the auto major said.
"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," it noted.
MSI stock was trading nearly 1.83 per cent down at Rs 6,172.35 on the BSE in the afternoon trade.