Analysts at Nomura had expected Maruti's Q2 revenue growth at 11 per cent YoY at Rs 18,871.2 crore and bottom line at Rs 1,508.4 crore. READ EXPECTATIONS HERE
During the quarter, Maruti sold a total of 3.93 lakh vehicles, up 16.2 per cent on YoY basis. Sales in the domestic market stood at 3,70,619 units, higher by 18.6 per cent YoY. Exports were at 22,511 units, lower by 12.7 per cent.
Maruti's Q2 earnings before interest, tax, depreciation, and ammortisation (Ebitda) came in at Rs 1,933 crore while Ebitda margin for the quarter stood at 10.3 per cent, up 86 basis points (bps) from 9.46 per cent in Q2FY20.
The company said that higher sales volumes leading to improved capacity utilisation, lower sales promotion and advertisment expenses, lower operating expenses and cost reduction efforts contributed positively to the margin movement. On the other hand, adverse commodity prices, adverse foreign exchange fluctuation, and lower fair value gains on invested surplus impacted the margins negatively.
Maruti Suzuki said its performance in this financial year has been affected by the Covid-19 Pandemic.
"In Quarter 1, the performance of the Company was significantly affected due to Covid-19 related disruptions and lockdowns. In Quarter 2, the performance improved on the back of some demand recovery and gradual improvement in supply conditions. Production across the Company’s factories and supply chain was progressively ramped up consistent with our policy of maximum safety of the people and following all prescribed protocols to ensure this," it said in a press release.
Maruti Suzuki's stock slid 2.7 per cent to day's low of Rs 6,988.70 after the quarterly result announcement. In comparison, the benchmark S&P BSE Sensex was down 0.87 per cent at 2:40 PM.