Maruti Suzuki India Ltd on Wednesday reported a net loss of ₹249.9 crore for quarter ending 30 June, as result of significant decline in vehicle sales due to the covid-19 related disruptions. Higher other income and lower taxes paid during the quarter have managed to reduce the losses incurred during the period.
Country's largest passenger vehicle manufacturer had reported a net profit of ₹1435.5 crore in the year-ago period.
The company's net sales during the first quarter of FY21 declined 79.2% year-on-year to 4106.5 crore. Total vehicle sales in the given period dropped nearly 79% to 36775 units.
Operating loss stood at ₹863 crore, compared to a profit of ₹2047.8 crore, due to higher fixed costs like material and employee expenses.
Other income increased 57.61% to ₹1318.8 crore in the April-June quarter, which helped Maruti Suzuki narrow the losses.
As a result of the covid-19 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 a lockdown stipulated by the government, Maruti Suzuki said in a statement.
Automobile manufacturers across the country had to suspend operations at their factories, beginning 22 March, following government directives amid the covid-19 pandemic.
After resuming the production on 12 May at its Manesar based factory, the New Delhi based manufacturer reported wholesale of just 13,865 units during the month. Factory dispatches improved significantly to 51274 units in June as demand for its entry level vehicles started picking up.
The maker Alto and Swift hatchbacks had a rough FY20 due to contraction in consumer demand as a consequence of the economic slowdown and increase in vehicle prices due to change in emission and safety norms.