Maruti Q3 net almost halves to ₹1,042 cr. as chip shortage bites
Company aims to boost output in Q4 as electronics supply ‘improving gradually’
Maruti Suzuki India Ltd. on Tuesday reported a 47.8% fall in third-quarter consolidated net profit to ₹1,041.8 crore, mainly due to the adverse impact of the ongoing semiconductor shortage on production and sales.
“Production was constrained by a global shortage in the supply of electronic components because of which an estimated 90,000 units could not be produced,” India’s largest carmaker said, adding that there was no lack of demand as the company had more than 2,40,000 pending customer orders at the end of the December quarter.
The stock surged 6.88% on the BSE to ₹8,600.60, the best performer on the S&P BSE Sensex, as investors cheered customers’ faith in the company’s offerings.
“We expect domestic PV industry to record double digit volume growth in FY23 and FY24, which would support MSIL’s business,” said Mitul Shah, head of research at Reliance Securities. “Moreover, sales of premium products would further increase,” he added.
Revenue from operations slid 3.4% to ₹23,253.30 crore. Maruti Suzuki said it sold a total of 4,30,668 units during the quarter, down from 4,95,897 units in the year-earlier period.
“Though still unpredictable, the electronics supply situation is improving gradually,” Maruti Suzuki said. “The company hopes to increase production in Q4, though it would not reach full capacity,” it added.
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