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Maruti Suzuki Share Quarterly Results

Auto companies have not been having the best of times. Sales are under pressure due to weak demand. At the same time, output is constrained due to a shortage of microchips. To add their problems, input costs are sharply up. Auto companies like Maruti have resorted to a series of price hikes, but that has just partially offset their challenges.
Quarterly Numbers of Maruti Suzuki
Rs in Crore |
Dec-21 |
Dec-20 |
YOY |
Sep-21 |
QOQ |
Total Income (Rs cr) |
₹ 23,253 |
₹ 23,471 |
-0.93% |
₹ 20,551 |
13.15% |
EBITDA (Rs cr) |
₹ 919 |
₹ 1,485 |
-38.11% |
₹ 154 |
497.92% |
Net Profit (Rs cr) |
₹ 1,042 |
₹ 1,997 |
-47.82% |
₹ 487 |
113.97% |
Diluted EPS (Rs) |
₹ 34.49 |
₹ 66.10 |
₹ 16.12 |
||
EBITDA Margin |
3.95% |
6.33% |
0.75% |
||
Net Margins |
4.48% |
8.51% |
2.37% |
Maruti Suzuki reported marginal -0.93% tapering of sales for the Dec-21 quarter at Rs.23,253 crore on a YoY basis. Let us now turn to volumes. During the December 2021 quarter, sales volumes of Maruti Suzuki stood at 430,668 units compared to 495,897 units in the Dec-20 quarter. This sharp fall in volumes is largely on account of plant shutdowns for prolonged periods of time.
The plant shutdowns were forced on the company due to a shortage of microchips and other key electronic components. However, volumes have shown positive traction on sequential basis. On a sequential basis, the revenues were up by 13.15% with positive traction seen on volumes and also on sales due to better pricing. It would be April 2022 by the time Maruti returns to normal capacity volumes.
For Dec-21 quarter, operating profits were down -38.11%. The sharp fall in operating profits was on account of volume pressure and pressure on input costs. For instance, material costs were up as a share of sales in Q3. Price hikes only compensated partially for the higher input costs in the quarter. Operating margins contracted from 6.33% in Dec-20 quarter to 3.95% in Dec-21 quarter. Operating margins were however higher on a sequential basis.
Net Profits for the Dec-21 quarter were sharply lower by -47.82% YoY at Rs.1,042 crore due to the transmission of the operating profit pressures on the bottom line. In addition, there was also the pressure from lower non-operating income in the latest quarter. Net profit margins contracted from 8.51% in the Dec-20 quarter to 4.48% in the Dec-21 quarter. However, the net margins were 211 bps higher on a sequential basis.
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