Maruti Suzuki's PAT dips by 47.90% YoY to Rs1,011cr

25 Jan 2022 , 03:32 PM

Maruti Suzuki Ltd., India’s largest car manufacturer, announced its results for the quarter ending December 2021. Even though the company’s reported profit remained lower than the previous quarter, the company was able to beat its estimates.

The company reported a net profit of Rs 1,011 crore for Q3 FY’22 against Rs 1,941.40 crore, showing a downside of 47.90% YoY.

The company stated that in spite of the company’s efforts towards cost reduction on the back of lower sales volume, elevated commodity prices, and lower non-operating income on account of mark-to-market impact, the company’s profits rallied.

The company reported the revenue from the sale of products at Rs 22,187 crore against Rs 22,236 crore in the previous corresponding quarter.

Operating Ebit margin stood at 4.1 per cent in Q3FY22 against 6.7 per cent in Q3FY21.

The profit margin was seen at 4.6 per cent against 8.7 per cent in the previous corresponding quarter.

The company cited that it won’t be appropriate to compare the results of this quarter with the first and second quarter as the company faced a severe shortage of electronic components impacting its performance during the quarter under consideration.

“The company’s demand was apt as it has over 2,40,000 pending customer orders at the end of the quarter. Production was impacted by a global shortage in supply of electronic components, because of which the company was unable to produce approximately 90,000 units,” stated the company.

It further added, “The electronic supply situation is improving globally, even though it still remains unpredictable. The company hopes for better production in Q4 even though it would not reach full production capacity.”

Maruti Suzuki’s share ended at Rs8,600.60 up by Rs553.3 or 6.88% from its previous closing of Rs8,047.30 on the BSE. The scrip opened at Rs8,047 and touched a high and low of Rs8,661.60 and Rs7,900 respectively.