Maruti Suzuki India Ltd.’s profit rose on better sales even as a global chip crisis and input cost pressures persist. Still, the earnings missed estimates.
Net profit for India’s largest carmaker increased 7.8% sequentially to Rs 475.3 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 691-crore consensus estimate of analysts tracked by Bloomberg.
Q2 FY22 Highlights (QoQ)
Revenue rose 15.6% to Rs 20,538.9 crore, compared with the Rs 19,378-crore estimate.
Earnings before interest, tax, depreciation and amortisation rose 8.9% to Rs 854.9 crore, against the Rs 1,138-crore forecast.
Ebitda margin stood at 4.16% against 4.4%. Analysts had pegged the metric at 5.9%.
The Gurugram-based automaker has sold 7% more vehicles sequentially at 3.79 lakh units in the July-September period.
That, too, after the maker of Swift and Baleno estimated production volume to be around 40% of the normal level in September, after halting production for three consecutive Saturdays and cutting one shift in August.
The company had cut production in August and September, and is not sure when the supply of chips will improve.
The carmaker had earlier said production volume would slump to 60% of the usual level in October—a month that marks the beginning of the festive period considered auspicious for new purchases — as the semiconductor shortage, that began in December last year, persists.
The festive period is crucial for automakers looking to make up for lost sales after the second wave of Covid-19.
Further, this quarter, the filing said, 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 had hiked prices of its models in September, the fourth such move so far this year.
Shares of Maruti Suzuki were trading flat after the results were announced compared with a 0.25% gain in the benchmark Nifty 50.