The Board of Directors of Maruti Suzuki India Limited have announced the company’s financial results for April-June — Quarter 1 of the Financial Year 2021. Maruti Suzuki reports that the Indian manufacturer registered a net loss of Rs 249 crore. The manufacturer states that due to the pandemic of COVID-19, it was the first time in the company’s history that a significant portion of the quarter had zero production and zero sales. This was down to the nationwide lockdown which was imposed across the nation to control the spread of the highly contagious virus in April and early part of May 2020. After relaxation measures were announced by the Indian government, Maruti Suzuki restarted production in a phased manner in May. Maruti Suzuki claims that the production for the whole quarter was equivalent to just about two weeks of regular operations.
It is the first time since 2003 Maruti Suzuki has recoded in the red for a quarter. Maruti Suzuki’s domestic sales between April-June 2020 say just 67,027 units being sold against 3,74,481 units from FY2020 recording a dramatic drop of 82.1%. Exports also took a hit dropping by -66% with just 9,572 units being shipped against 28,113 units from the corresponding period in the previous fiscal. Overall sales dropped by 81% having sold a total of 76,599 vehicles during the quarter, against 4,02,594 vehicles sold between April-June in the previous financial year.
This resulted in a net loss of Rs 249 crore in Q1 FY2021 against a profit of Rs 1,436 crore last year. Maruti Suzuki India Limited recorded net sales of Rs 3,677 crore at a loss of 80% as against Rs 18,735 crore from the same time period in the previous fiscal.
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