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Wednesday, August 05, 2020

Covid impact: Maruti Suzuki India reports Q1 net loss at Rs 249.4 crore

The company also announced an 80 per cent dip in revenue as it fell from Rs 18,735 crore in June 2019 to Rs 3,677 crore in June 2020.

By: Express Web Desk | New Delhi | Updated: July 30, 2020 12:46:08 am
The Maruti Suzuki India Ltd. headquarters stands in New Delhi, India, on Thursday, Oct. 24, 2019. (Photographer: Prashanth Vishwanathan/Bloomberg)

As production and sales of cars were hit significantly following the imposition of lockdown across the country amidst the COVID-19 pandemic, Maruti Suzuki India Limited — the largest passenger car manufacturer in the country — posted its first quarterly loss in 17 years, since its listing in July 2003. It announced a loss of Rs 249 crore in the quarter ended June 30, 2020.

The company also announced an 80 per cent dip in revenue as it fell from Rs 18,735 crore in June 2019 to Rs 3,677 crore in June 2020.

During the quarter the company sold 76,599 units — 67,027 vehicles in the domestic market and 9,572 units as exports. By comparison, the company had sold 4,02,594 units in the corresponding quarter last year.

In its statement, the company said due to the lockdown and restrictions on account of safety, “the production in the whole quarter was equivalent to just about two weeks’ of regular working.” It further said that 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.”

Rs 2,844 cr net loss for InterGlobe Aviation in Q1

New Delhi: IndiGo’s parent company InterGlobe Aviation Ltd Wednesday posted a net loss of Rs 2,844 crore for April-June as its revenue from operations fell 92 per cent year-on-year but total expenses fell only by 52 per cent as against the same period last year. The April-June quarter was significantly hit by the nationwide lockdown imposed to contain the pandemic and led to domestic operations being shut till May 25.

“The aviation industry is going through a crisis of survival and therefore, our cash balance remains our number one priority. However, we also recognize that major disruptions offer companies opportunities for improvement in product, customer preference, costs and employee engagement,” IndiGo CEO Ronojoy Dutta said. —ENS

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