The country’s top automaker, Maruti Suzuki India Ltd, posted a 48 percent drop in its third-quarter net profit on Tuesday as the global chip shortage has slowed production and high material costs squeezed margins.
The company reported a profit of Rs 1,011 crore in the October-December quarter of the current fiscal year, down 47.90 percent year-on-year (YoY) from a profit of Rs 1,941.4 crore during the corresponding period last year.
Maruti said that despite efforts to reduce costs due to lower sales volume, high raw material prices and lower non-operating income due to the mark-to-market impact, profits were relatively low.
Revenue from product sales was Rs 22,187 crore as against Rs 22,236 crore in the corresponding quarter last year.
Operating EBITDA margin was 4.1 percent in the third quarter of the current fiscal year, compared to 6.7 percent in the same period last year. The profit margin was 4.6 percent, compared to 8.7 percent in the same quarter last year.