However, it was the margin performance of the company that was a shocker, reflecting the impact of higher raw material prices. Operating margin in the quarter stood at 4.8 per cent as against 8.6 per cent reported in the previous quarter.
The topline of the passenger carmaker soared 333 per cent year-on-year to Rs 17,770 crore largely because of a very weak base in the year-ago quarter, which was marred by the national lockdown to contain the spread of the pandemic.
“The production and sales in quarter 1 FY2021-22 were significantly affected due to the pandemic related disruptions,” the company said.
On a sequential basis, the company’s net sales plummeted 27 per cent, while the net profit tanked 62 per cent, reflecting the impact of the second wave on the business.
The company said that it continued to face adverse commodity prices with material costs rising almost 200 basis points sequentially as percentage of revenues. Rising commodity prices have adversely affected automobile makers as they have been unable to fully pass on the impact to consumers due to the weak demand environment in the sector.
Shares of Maruti Suzuki ended 1.3 per cent lower at Rs 7,150 on the National Stock Exchange.