[blackwasp]

Maruti Suzuki has reported a loss of Rs. 249.4 crore for the quarter ending June 2020. This is the first time since 2003 that the Indian carmaker has reported a loss.

Despite the loss, the company beat the loss estimates projected by analysts. Domestic sales stood at 67,027 units while 9,572 units were exported. Net sales of Rs. 3677.4 crore were accounted in the quarter. In the same period last year, the company had sold 4,02,594 units and recorded a profit of Rs. 1,435.5 crore.

The numbers reflect the effects of the Covid-19 pandemic as well as the lockdowns imposed to contain the spread of the virus. Operations were paused for a large part of the quarter and slowly resumed towards the month of June. Total production during the whole quarter was equivalent to about 2 weeks of regular production.



Link to the Team-BHP News

[CrAzY dRiVeR]

The irony of the tough situation we are in - this loss announcement was welcomed by the market and Maruti shares are up by 3% today morning.

[DaptChatterjee]

Another factor is the loss of Diesel Engines. If they want to regain 50%+ market share, development of the 1.5L BS-VI Diesel engine needs to be put on fast track.

[aniketi]

Originally Posted by CrAzY dRiVeR

The irony of the tough situation we are in - this loss announcement was welcomed by the market and Maruti shares are up by 3% today morning.

It's because MSIL share has already factored the loss and current situation is much better. Looks like Maruti will do better business in this quarter and we will see better profits going forward.

[GTO]

Originally Posted by CrAzY dRiVeR

this loss announcement was welcomed by the market and Maruti shares are up by 3% today morning.

Originally Posted by DaptChatterjee

Another factor is the loss of Diesel Engines. If they want to regain 50%+ market share, development of the 1.5L BS-VI Diesel engine needs to be put on fast track.

True. It's alarming that such a large company with enormous resources missed the BS6 deadline in the first place. The 1.5L BS6 is coming, within 12 months I believe.

I would think Maruti is already chalking out plans to shoehorn it into the Dzire / Swift too. Honda sells a 1.5L diesel in a sub-4 meter sedan.

[SmartCat]

Originally Posted by CrAzY dRiVeR

The irony of the tough situation we are in - this loss announcement was welcomed by the market and Maruti shares are up by 3% today morning.

The losses were lower than equity research analysts "expectations"

[volkman10]

Maruti Suzuki is on the path to recovery show a growing trend with emphasis on the entry level segment, July domestic sales grow 1.3% to 101,307 units.

Maruti Suzuki presently sells Baleno to TKM, which the latter sells as Glanza. Combined, Maruti Suzuki's total domestic sales in July 2020 were 101,307 units, up 1.3 percent from 100,006 units registered a year ago

the entry-level hatchbacks continue to bring in large volumes, the Nexa portfolio should not be understated as the Baleno’s numbers have been impressive all along. The company has intentions to widen the Nexa footprint and thus new models are definitely in the pipeline within the next three years.

The Alto and S-Presso combined to record 17,258 units with 49.1 per cent growth.



Link

[Carma2017]

Suzuki has a very very aggressive Line up overhaul plan with multiple launches of vehicles and power trains in FY 2021 onwards. I think the pandemic is in a way helping them so that others do not make too big a leap ahead and are constrained.