Chip shortage takes a toll on Maruti's profits

New Delhi: India's largest carmaker Maruti Suzuki India on Tuesday reported a 47.82 per cent decline in consolidated net profit at Rs1,041.8 crore in the third quarter ended December 2021, on account of lower sales due to the ongoing semiconductor shortage and increase in commodity prices. The auto major had posted a consolidated net profit of Rs1,996.7 crore in the October-December period of last fiscal, Maruti Suzuki India said in a regulatory filing.

The fall in net profit during the period under review was due to lower sales volume, high commodity prices and lower non-operating income on account of mark-to-market impact, it noted. Consolidated revenue from operations declined marginally to Rs 23,253.3 crore in the third quarter as compared to Rs 23,471.3 crore in the year-ago period, it added.

Total vehicle sales were down 13.1 per cent to 4,30,668 units in the third quarter as against 4,95,897 units in the corresponding period last fiscal.

Interestingly, shares of Maruti Suzuki India on Tuesday jumped over seven per cent even as the net profit declined. The stock rallied 6.88 per cent to settle at Rs 8,600.60 on BSE. During the day, it jumped 7.63 per cent to its 52-week high of Rs 8,661.60. On NSE, it gained 7.42 per cent to settle at Rs at Rs 8,650.10.

On a standalone basis, the company said its net profit in the third quarter stood at Rs 1,011.3 crore as compared with Rs 1,941.4 crore in the same period previous year.

Net sales declined marginally to Rs 22,187.6 crore in the period under review from Rs 22,236.7 crore in the same period previous fiscal. In the domestic market, the company's sales stood at 3,65,673 units in the third quarter as against 4,67,369 units in the Q3 of FY21, it said.