Thursday, 2 December, 2021

Maruti Suzuki Q2 profit falls 65pc

Hyundai Motor’s Q3 net profit misses estimates

Maruti Suzuki Q2 profit falls 65pc

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NEW DELHI: India’s biggest domestic car manufacturer Maruti Suzuki India reported a 65.3 per cent year-on-year (YoY) decline in net profit at Rs 475.3 crore for the July to September quarter of FY22 (Q2FY22). It was Rs 1,371.6 crore in Q2FY21.

South Korea’s Hyundai Motor Co slightly missed analysts’ profit estimates as the global chip crisis drove down vehicle shipments and it said it expects it will take a long time to get back to normal chip supplies.

On a sequential basis, the profit rose 7.8 per cent from Rs 440.8 crore, report agencies.

“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. The Company made maximum efforts to absorb input cost increases offsetting them through cost reduction and passed on minimum impact to customers by way of car price increase,” Maruti Suzuki said in an exchange filing.

Revenue from operations, meanwhile, came in at Rs 20,538.9 crore, up from Rs 18,744.5 crore reported in the year ago period, and Rs 17,770.7 crore logged in Q1FY21.

During the Q2FY22, the company registered net sales of Rs 19,297.8 crore compared to nets sales of Rs 17,689.3 crore in Q2FY21.

“The Company sold a total of 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 period previous, the Company clocked a total sale of 393,130 units including 370,619 units in domestic market and 22,511 units in the export market,” it said in a statement.

It added: An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The Company had more than 200,000 pending customer orders at the end of the quarter for which the Company is making all efforts to expedite deliveries.

Ebitda (earnings before interest, tax, depreciation, and amortization) was Rs 854.8 crore, down 55.8 per cent YoY, from Rs 1,933.6 crore. Ebitda margin, too, shrank 610 basis points to 4.2 per cent from 10.3 per cent YoY.

Hyundai Motor, which together with affiliate Kia Corp is among the world’s top 10 automakers by sales, reported a net profit of 1.3 trillion won ($1.10 billion) for the July-September quarter, report agencies.

In the same period a year earlier it posted a loss of 336 billion won when it was hit by a one-time expense related to engine quality issues and recalls.

The profit was just shy of an average analyst forecast of 1.4 trillion won compiled by Refinitiv SmartEstimate.

“Hyundai Motor expects that on-year sales growth might slow down for the rest of 2021 amid adverse business conditions caused by the unstable supply of semiconductor chips,” Hyundai Motor said.