Maruti posts Rs 268 crore net loss in Q1; first time in red since 2003 in wake of COVID-19 pandemic

The auto major, which got listed way back in July 2003, had posted a consolidated net profit of Rs 1,376.8 crore in the April-June quarter of 2019-20.

Maruti posts Rs 268 crore net loss in Q1; first time in red since 2003 in wake of COVID-19 pandemic

New Delhi: The country's largest carmaker Maruti Suzuki India on Wednesday reported first ever quarterly loss since becoming public 17 years back with a consolidated net loss of Rs 268.3 crore for the first quarter ended June 30, hit hard by coronavirus pandemic.

The auto major, which got listed way back in July 2003, had posted a consolidated net profit of Rs 1,376.8 crore in the April-June quarter of 2019-20.

Net sales declined to Rs 3,679 crore in the first quarter as against Rs 18,738.8 crore in the year-ago period, MSI said in a statement.

On a standalone basis, the company reported a net loss of Rs 249.4 crore for the first quarter ended June 30.

It had posted net profit of Rs 1,435.5 crore on standalone basis in April-June of 2019-20.

The auto major's net sales during the period under review declined to Rs 3,677.5 crore, as compared to Rs 18,735.2 crore in the year-ago period.

During the first quarter, MSI sold a total of 76,599 vehicles. Sales in the domestic market stood at 67,027 units, while exports were at 9,572 units.

The company had sold 4,02,594 units in the first quarter previous fiscal.

"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," MSI said.

Production and sales started in a very small way in May, it added.

The company's first priority was health, safety and wellbeing of all employees and associates across the value chain, including its customers, the auto major said.

"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," it noted.

MSI stock ended 1.62 per cent down at Rs 6,185.6 on the BSE on Wednesday.