India’s biggest carmaker Maruti Suzuki reported a standalone net profit of ₹475 crore for the September quarter, down 65% from ₹1,371 crore in the year-ago period.Maruti Suzuki shares were up over 1% at ₹7,402.60 in afternoon trade on NSE.
The profit was impacted by adverse commodity prices and lower sales volume due to electronic component shortages, leading to lower capacity utilization.
This quarter was also marked by an unprecedented increase in the prices of commodities like steel, aluminium and precious metals within a span of one year.
The New Delhi-headquartered company has been under pressure from the rising prices of commodities such as steel and copper. It has tried to preserve its margins by passing on rising costs to its customers, having bumped up the prices of its cars four times this year.
Car makers have been forced to make sharp production cuts this year as supply chain disruptions and booming demand for consumer electronics have led to an acute shortage of chips, which have become a critical component in automobiles, powering everything from fuel injection to entertainment systems.
Maruti’s earnings before interest, tax, depreciation and amortisation, Ebitda came in at ₹855 crore, down 56% over last year, while margins fell to 4.2%.
The company has clocked net sales of ₹19,297 crore in Q2 compared to net sales of ₹17,689 crore in the last year period. This is a rise of 9% year-on-year.
Total revenue from operations, meanwhile, increased 9% to ₹20,538 crore as against ₹18,744 in the last year period.
Maruti sold a total of 379,541 units during the quarter constrained by a global shortage in the supply of electronic components. Sales in the domestic market stood at 320,133 units.
An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The Company had more than 200,000 pending customer orders at the end of the quarter for which the company is making all efforts to expedite deliveries.