Maruti Suzuki, which sells every second car in India, also said that it sees an improvement in the chip shortage crisis in the current quarter, which it expects to ramp up production to close the gap on pending orders. It will help to bring
see photosMaruti Suzuki sees improvement in the chip shortage crisis in the current quarter.
Shares of India’s top carmaker Maruti Suzuki rose over 7 per cent on Tuesday as a series of price hikes to offset higher material costs, improved margins despite a fall in third-quarter profit. Happened. The company, which sells every second car in India, also said it sees an improvement in the chip shortage crisis in the current quarter, which it expects to ramp up production to close the gap on pending orders. will gain help in. However, it added that still may not be enough to reach full potential.
“Although still unpredictable, the electronics supply position is improving,” Maruti said in a statement, adding that it has over 240,000 pending orders.
According to data from Refinitiv IBES, Maruti’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, a key measure of profitability, stood at 6.7% for the quarter, higher than analysts’ estimate of 6.2%.
The company’s shares have reached their highest level since September 2018.
Japan’s Suzuki Motor Corp-owned Maruti reported a more than expected 48% fall in third-quarter net profit as production slowed amid chip shortages and higher raw material costs.
Carmakers, which closed plants or operated at reduced capacity during the height of the pandemic, are competing with the consumer electronics industry for chips – a critical component in electronic components.
The company said the shortfall cost Maruti an estimated 90,000 vehicles in lost production in the previous quarter.
Supply chain disruptions have also raised raw material prices and shipping costs, and car manufacturers have attempted to pass some of these costs on to customers. Maruti hiked prices at least four times last year.
Maruti said unit sales fell to 430,668 units from 495,897 units a year ago.
Profit stood at Rs 10.11 billion ($135.43 million) for the three months ended December 31, compared to Rs 19.41 billion a year ago. Analysts were expecting Rs 10.58 billion. Total revenue from operations declined by 1 per cent.
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