maruti: Maruti Q2 net down 66% on rising costs

NEW DELHI: Maruti Suzuki’s net profit declined by 66% in the second quarter of this fiscal as higher cost of raw materials dented margins, while shortage of semiconductor chips impacted production and wholesale deliveries to dealerships. The company, saddled with a customer backlog of over 2 lakh bookings in view of production shortage, reported a net profit of Rs 487 crore in the three months ending September 30, 2021, against Rs 1,420 crore in the same period last year. The company registered net revenue of Rs 19,298 crore against Rs 17,689 crore in the same period of previous fiscal. Maruti chairman R C Bhargava said “uncertainty prevails” in the Indian car market in view of shortages of electronics parts, and added that it will be a challenge to give a guidance around fullyear sales. Coupled with a rise in input prices such as of precious metals and steel, which he said had risen by around 6%, the pressures on the Indian auto industry remain severe.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
%d bloggers like this: