India’s largest carmaker Maruti Suzuki on Wednesday, said that it reported a decline of 65% in its net profit at INR 475.30 crore in the second quarter ended on 30th September 2021 due to global semiconductor shortage and high commodity prices.
The company recorded INR 1,371.60 crore in the same quarter last fiscal. In a regulatory filing, the company said this quarter was also marked by an unprecedented increase in the prices of commodities like steel, aluminium, and precious metals within a span of one year.
It made maximum efforts to absorb input cost increases offsetting them through cost reduction, and passed on minimum impact to customers by way of the car price increase.
The net sales for Maruti Suzuki were up by 9% to INR 19,297.8 crore during the same period under review. It sold 379,541 units during the quarter constrained by a global shortage in the supply of electronic components.
Sales in the domestic market stood at 320,133 units. Exports were at 59,408 units, the highest ever in any quarter. During the same quarter previous year, the company clocked a total sale of 393,130 units, including 370,619 units in the domestic market and 22,511 units in the export market.
R C Bhargava, Chairman, Maruti Suzuki, in a press briefing, said, 'We have lost nearly a month's sales volume of 116,000 vehicles owing to the electronics component shortage mostly corresponding to the domestic models.'
The company said it has more than 200,000 pending customer orders at the end of the quarter, for which it is making all efforts to expedite deliveries.