By Malvika Gurung
Investing.com -- The country’s largest passenger vehicle manufacturer Maruti Suzuki (NS: MRTI ) India posted its earnings result for the quarter ending December 2021, as its net profit declined 47.9% to Rs 1,011 crore in the quarter, compared to the same period last year.
While analysts at ET had predicted this figure at Rs 896.7 crore, a net profit of Rs 1,011 crore exceeds the Street’s estimate.
The automaker’s fall in net profit was due to a global shortage in chip production, along with rising input costs, like high commodity prices and squeezed margins.
As a result, the company’s revenue was reduced to Rs 22,187 crore in Q3 FY22, compared to Rs 22,236 crore reported in the same quarter last year. MSI’s EBIT margin fell to 4.1% from 8.3% in Q3 FY21.
The company’s management has stated that it did not face any issues on the demand front, as over 2.4 lakh pending customer orders were remaining at the end of Dec quarter. Due to the global supply slump of semiconductor chips, about 90,000 units could not be produced.
Despite major headwinds, MSI witnessed its highest ever exports in the quarter under focus at 64,995 units, up 127.8% YoY, however, in the domestic market, MSI’s sales dropped 21.8% to 3.65 lakh units in Q3 FY22.
Post the announcement of Q3 earnings, the carmaker’s shares climbed, and at 3:20 pm on Tuesday, the stock was trading 7.5% higher at Rs 8,658 apiece.
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