Automobile manufacturer Maruti Suzuki India on July 29 posted a net loss of Rs 249.4 crore for the quarter ended June 2020 due to operating loss and lower revenue following steep decline in sales volumes during lockdown. But it was better than the average of estimates of analysts polled by CNBC-TV18 pegged at Rs 445 crore loss due to tax write-back, lower operating expenses and higher other income.
Profit in the June quarter 2019 stood at Rs 1,435.5 crore and was Rs 1,291.7 crore in March quarter 2020.
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.
At operating level, its EBITDA (earnings before interest, tax, depreciation and amortisation) loss stood at Rs 863.4 crore, which was better than CNBC-TV18 Poll estimates of Rs 540 crore loss. Company had reported EBITDA at Rs 2,047.8 crore for June quarter 2019.
Other income grew significantly by 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.
The stock was trading at Rs 6,172.35, down 1.83 percent on the BSE at the time of publishing this copy.
The stock price rallied 36 percent during the quarter following recovery in the equity markets, but it fell around 15 percent year-to-date.