Maruti Suzuki in its June quarter results for FY21 posted a net loss of Rs. 249.4 crore due to revenue and operating loss on the back of sharp decline in sales volume. But the results however came in better than analyst estimates on account of lower operating expenses and tax-write back.
In the March ended quarter of 2020, profit came in at Rs. 1291.7 crore. Revenue from operations declined sharply by 79.2 percent to Rs 4,106.5 crore compared to year-ago period.
"Operations and financial results for the quarter ended June 2020 have been adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by the Government of India due to which the operations were suspended for part of the quarter and gradually resumed with requisite precautions. The results for the quarter are, therefore, not comparable with those for the previous quarters," said Maruti in its BSE filing.
Company sold 76,599 vehicles during June quarter 2020, registering a 81 percent decline compared to 4,02,600 vehicles sold in corresponding period last fiscal. In Q1FY21, both domestic and exports volumes declined by 82 percent and 66 percent YoY respectively.
"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," company said.
Also, the company's EBITDA loss came in at Rs. 863.4 crore. Company had reported EBITDA at Rs 2,047.8 crore for June quarter 2019.
Other income grew substantially by as much 57.6 percent year-on-year to Rs 1,318.3 crore in June quarter 2020 boosted by higher fair-value gain on the invested surplus, while total expenses for the quarter plunged by 69.1 percent YoY to Rs 5,770.5 crore.
The tax write-back for the quarter stood at Rs 96.3 crore against expenses of Rs 475.4 crore in same period last year.
At the time of writing the story, stock of Maruti after the Q1 results were trading weak by 2.50% at Rs. 6130.