For the first time since in nearly 17 years, automobile company Maruti Suzuki reported a net loss of Rs 249.4 crore in the April to June quarter, as against a profit of Rs 1,435.5 crore in the same period last year. During the quarter, the company registered net sales of Rs 3,677.5 crore, as against net sales of Rs 18,735 crore in Q1FY20.
The loss, however, was partially off-set by lower operating expenses and higher fair-value gain on the invested surplus, because of which other income grew by 57.6% year-on-year to Rs 1,318.3 crore in June quarter 2020, while total expenses for the quarter fell by 69.1% y-o-y to Rs 5,770.5 crore.
Revenue from operations saw a massive decline of 79.2% to Rs 4,106.5 crore compared to Q1 last fiscal.
The company said in a statement that owing to the COVID-19 pandemic, it was an unprecedented quarter in its history wherein a large part of the quarter had zero production and zero sales in compliance with a lockdown stipulated by the government. Production and sales started in a very small way in the month of May and with requisite precautions.
The production in the whole quarter, it said, was equivalent to just about two weeksâ€™ of regular working and that the results have to be viewed in this context. â€śThe results for the quarter are, therefore, not comparable with those for the previous quarters,â€ť the company said in a statement.
The company sold a total of 76,599 vehicles during the quarter, as against 402,594 vehicles in the same period last year. Sales in the domestic market stood at 67,027 units and exports were at 9,572 units.
Marutiâ€™s EBITDA (earnings before interest, tax, depreciation and amortisation) loss stood at Rs 863.4 crore, as against a reported EBITDA of Rs 2,047.8 crore for June-ended quarter 2019.