The CORONAVIRUS outbreak in the country has taken a toll on everything and everyone, and no different seems the case for the India biggest automaker. Maruti Suzuki India on Wednesday reported standalone net loss of Rs 249.4 crore for the first quarter ended on June 30.
Its net sales during the period declined to Rs 3,677.5 crore, as compared to Rs 18,735.2 crore in the year-ago period. Revenue from operations also declined sharply by about 79.2 percent to Rs 4,106.5 crore.
Maruti, as India’s largest automotive manufacturer by market capitalization of about 53 percent, logged a total net loss of 2.49 billion rupees ($33.30 million) for the three months ended June 30, as compared with a profit of 14.36 billion rupees a year ago.
“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.
“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” said the company.
The automotive giant said that thecompany’s first priority was to ensure the health, safety and wellbeing of all employees and associates across the value chain, including its customers.
The production and sales started in a very small way in May. “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,” the company added.
The stock price rallied 36 percent during the quarter following recovery in the equity markets, but it fell around 15 percent year-to-date.