Maruti Q3 profit falls 48% as semiconductor shortage hits sales

Maruti Suzuki India on January 25 reported a 47.82% decline in consolidated net profit at Rs 1,041.8 crore in the third quarter ended December 2021.
Maruti Suzuki
Maruti Suzuki
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The country's largest carmaker Maruti Suzuki India on Tuesday, January 25 reported a 47.82% decline in consolidated net profit at Rs 1,041.8 crore in the third quarter ended December 2021, on account of lower sales due to the ongoing semiconductor shortage and increase in commodity prices.

The auto major had posted a consolidated net profit of Rs 1,996.7 crore in the October-December period of last fiscal, Maruti Suzuki India said in a regulatory filing.

The fall in net profit during the period under review was due to lower sales volume, high commodity prices and lower non-operating income on account of mark-to-market impact, it noted.

Consolidated revenue from operations declined marginally to Rs 23,253.3 crore in the third quarter as compared to Rs 23,471.3 crore in the year-ago period, it added.

Total vehicle sales were down 13.1% to 4,30,668 units in the third quarter as against 4,95,897 units in the corresponding period last fiscal.

Maruti Suzuki noted that its production during the third quarter was constrained by a global shortage in the supply of electronic components because of which an estimated 90,000 units could not be produced.

"There was no lack of demand as the company had more than 2,40,000 pending customer orders at the end of the quarter. Though still unpredictable, the electronics supply situation is improving gradually. The company hopes to increase production in Q4, though it would not reach full capacity," it added.

On a standalone basis, the company said its net profit in the third quarter stood at Rs 1,011.3 crore as compared with Rs 1,941.4 crore in the same period the previous year.

Net sales declined marginally to Rs 22,187.6 crore in the period under review from Rs 22,236.7 crore in the same period the previous fiscal.

In the domestic market, the company's sales stood at 3,65,673 units in the third quarter as against 4,67,369 units in the Q3 of FY21, it said.

However, the auto major clocked its highest ever exports at 64,995 units in the third quarter, it added.

Maruti Suzuki shipped out 28,528 units in the third quarter of 2020-21 fiscal.

For the nine months ended December 31, 2021, the automaker posted a consolidated net profit of Rs 2,003.7 crore as compared to Rs 3,148 crore in the year-ago period.

Consolidated revenue from operations stood at Rs 61,580.6 crore as against Rs 46,337.5 crore in the April-December period of previous fiscal.

Shares of the company rose nearly 7% to close at Rs 8,600.60 on the BSE.

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