Maruti posted a fall greater than what was expected as it posted a 48% decline in profits YoY at Rs 1,011 crores. Its standalone revenues stood at Rs 23,246 crores, 1% below the Q3 figures of December 2020. Its sales volume fell 13% YoY as it sold 4,30,668 units in the quarter. Its domestic sales fell 22% YoY but its exports increased 66% YoY. The exports managed to keep its revenue close to previous year. Exporting over 64,000 units in this quarter, it is the company’s highest ever recorded exports.
Global chip shortage and rising input costs can be seen as some of the major contributors to such poor results. All car manufacturers are currently competing with consumer electronics’ companies in this time of chips shortage as these manufacturers had to shut down or operate their factories at a reduced capacity. Semiconductor chips are needed for every electronic device.
The company said that the demand for cars was strong in the quarter, however the lack of enough electrical components to complete production led to nearly 90,000 units not being produced. The company also added that it has almost 2,40,000 pending customer orders as on the last day of December 2021.
However, even after posting such disappointing results, the share opened lower than the previous day close of Rs 8,052.30 per share but it rose almost 7% as it touched a high price of Rs 8,664 per share.
Highlight by Aman Agarwal.