Maruti Suzuki Q2 Results: Profit slips over 65% to Rs 475 cr; margin under pressure amid spike in commodity prices

Auto heavyweight Maruti Suzuki reported a substantial decline in the profit after tax and margin, while revenue grew marginally in the second quarter of the financial year 2021-22 (Q2FY22).

On a standalone basis, the auto company’s profit slipped by over 65 per cent to Rs 475.3 crore in Q2FY22, as against Rs 1371.6 crore in the same period a year ago. While revenue gained almost 10 per cent to Rs 20,538.9 crore in the quarter versus Rs 18,744.5 core in the same quarter of FY21.

The auto major’s EBITDA too slipped nearly 56 per cent to 854.8 in Q2FY22 as compared to Rs 1933.6 crore in Q2FY21, and margin dipped 4.2 per cent from a 10.3 per cent year-on-year basis.

The company states key reasons for margin movement, “Adverse commodity prices and lower sales volume due to electronic component shortages, leading to lower capacity utilization.”