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Wednesday, December 08, 2021

Maruti net dives 65.7% on chip crunch, high commodity prices

It will launch electric vehicles after 2025 as demand for such vehicles at the moment is less and it will like to sell about 10,000 units a month when it enters the space

By: ENS Economic Bureau | New Delhi |
October 28, 2021 6:33:34 am
Maruti Suzuki India reported a 65.7 per cent dip in consolidated net profit at Rs 486.9 crore for the quarter ended September 2021.(File/Reuters)

Hit by a rise in input cost, following the jump in commodity prices, and decline in sales on account of ongoing semiconductor shortage, Maruti Suzuki India reported a 65.7 per cent dip in consolidated net profit at Rs 486.9 crore for the quarter ended September 2021. In the year-ago quarter, it had reported net profit of Rs 1,419.6 crore.

During the quarter, the domestic vehicle sales also declined to 3,20,133 units, as against 3,70,619 units in the year-ago period. The firm said it could not produce an estimated 1.16 lakh vehicles due to component shortage, adding it has over 2 lakh pending orders. “This quarter was also marked by an unprecedented increase in the prices of commodities within a span of one year…,” it said.

It will launch electric vehicles after 2025 as demand for such vehicles at the moment is less and it will like to sell about 10,000 units a month when it enters the space, Maruti Suzuki chairman RC Bhargava was quoted by PTI as saying.

L&T net falls 67%
Meanwhile, as per a PTI report, L&T reported a 67 per cent drop in consolidated net profit to Rs 1,819.45 crore for the September quarter.

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