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Maruti Suzuki India Ltd. reported a quarterly loss for the first time since its listing in 2003, as coronavirus lockdowns and supply chain disruptions stalled demand for the country’s largest automaker.
The pandemic has had a huge impact on automakers globally as people choose to stay indoors and troubles for Indian car manufacturers, who were already looking at inventory piles due to weak demand.
Maruti’s shares fell as much as 2.5% as it reported a net loss of 2.49 billion rupees ($33.30 million) for the three months ended June 30, compared with a profit of 14.36 billion rupees a year ago and analysts’ average loss forecast of 2.96 billion rupees, according to Refinitiv data.
The company, controlled by Japan’s Suzuki Motor Corp, said unit sales slumped 81% year-on-year to 76,599 vehicles as it reported numbers days after Mitsubishi Motors and Nissan Motor forecast record losses.
India went into a lockdown for over two months beginning late March. Maruti said manufacturing during the quarter was equivalent to about two weeks.
Revenue from operations fell nearly 80% to 41.07 billion rupees, it added.
The company’s strong balance sheet with huge cash and cash equivalents will help it in terms of providing support to its entire value chain system, said Arjun Yash Mahajan, head of institutional business at Reliance Securities.