COVID-19 Impact: Maruti Suzuki India posts first quarterly loss in 15 years
New Delhi | Jagran News Desk: India’s biggest carmaker has reported a quarterly loss for the first time in the June quarter since its listing in 2003.
Hugely affected by the disruptions in business due to the coronavirus pandemic, Maruti Suzuki India which is India’s largest automaker by market capitalization, has reported a net loss of 249 crores, resulting in sending its share down as much as 2.5%. The loss suffered for three months at the end of June is recorded against the net profit of 1,435 crores in the year-ago period.
As people across the globe had locked themselves insides their homes to stay safe, the demand for the automobile sector has drastically gone down during the past months and in India, problems have worsened for carmakers who already witnessed a weak demand.
Owing to the global pandemic of COVID-19, 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. Production and sales started in a very small way in the month of May. The company’s first priority was the health, safety, and wellbeing of all employees and associates across the value chain including its customers. Hence with carefully designed safety protocols, which went far beyond compliance levels, the production in the whole quarter was equivalent to just about two weeks’ of regular working. The results have to be viewed in this context," the company said in its regulatory filings.
According to several media reports, Maruti’s revenue declined 79.2% to Rs 4,106.5 crore as against ₹19,720 crores in June 2019. On Wednesday, the company's scrip on The Bombay Stock Exchange (BSE) was trading 2.2% lower at ₹6,142.
Posted By: Simran Babbar