- Maruti Suzuki reports net sales worth Rs 3,677 crore and a net loss of Rs 249 crore
- COVID-19-related lockdowns significantly affected sales, production and finances
Maruti Suzuki has released its financial results for the first quarter of the financial year. During the April-June 2020 (Q1 FY2021) period, the company sold a total of 76,599 vehicles, including 67,027 units in the domestic market and 9,572 units exported.
In terms of financial performance, the company reported net sales worth Rs 3,677 crore, and a net loss of Rs 249 crore. The latter has been partially off-set by lower operating expenses and higher fair-value gain on the invested surplus.
Maruti Suzuki says that due to the global COVID-19 pandemic, Q1 FY2021 was an unprecedented quarter in the brand’s history. A large part of the period had zero production and sales, in compliance with the lockdown stipulated by the Indian government.
Production and sales for the company – just like the rest of the industry – started in a very small way in the month of May. Maruti Suzuki India says its first priority was the health, safety and well-being of all employees and associates across the value chain, including its customers. Hence, with carefully designed safety protocols, which are claimed to be far beyond compliance levels, the production in the whole quarter was equivalent to just about two weeks’ of regular working. Maruti’s financial results have to be viewed in this context.
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