Maruti Suzuki India Ltd.’s profit fell for the second straight quarter, missing estimates, as local lockdowns to curb the deadlier second Covid-19 wave disrupted production and sales, stalling a nascent recovery in the industry.
Net profit of India’s largest carmaker slumped 62% sequentially to Rs 440 crore in the quarter ended June, according to an exchange filing. That compares with the Rs 878-crore consensus estimate of analysts tracked by Bloomberg.
“Profit for the quarter was primarily impacted due to lower sale volumes,” the company said in a statement.
Q1 FY22 Highlights (QoQ)
Revenue fell 26% to Rs 17,771 crore, compared with the Rs 18,171-crore estimate.
Earnings before interest, tax, depreciation and amortisation declined 59% to Rs 821 crore, compared with the Rs 1,120-crore forecast.
Ebitda margin contracted to 4.6% from 8.3%. Analysts had pegged the metric at 6.2%.
The Gurugram-based automaker sold 25% fewer vehicles than the preceding quarter at 3.53 lakh units as companies were forced into phased shutdowns and dealerships shut amid the pandemic’s second wave. Besides, increasing fuel expenses and commodity costs weighed.
Peer Tata Motors Ltd. reported a loss for the second straight quarter. Its revenue also fell and margin contracted sequentially.
Shares of Maruti Suzuki closed 1.32% down before the results were announced compared with a 0.24% decline in the benchmark Nifty 50.