One of India’s leading carmaker Maruti has a net loss of Rs 249.4 crore in the first quarter of the current financial year. The company had a profit of Rs 1,435.5 crore in the same period a year ago. Even in the March quarter, it had a profit of Rs 1,291.7 crore but what happened?
Maruti’s revenue fell 79 percent
The company released the result on Wednesday. The company said that it has incurred losses due to the decline in sales. Its revenue fell 79.2 percent to Rs 4,105 crore. Maruti Suzuki said the country suffered a lockdown due to the Corona epidemic. This showed an effect on the result. However, it cannot be compared to the result of the previous quarter. Maruti Suzuki reported that it had sold a total of 76,599 vehicles during the June quarter. The company sold 4.02 lakh vehicles in the same period a year ago. In comparison, there has been a decline of 81 percent in the June quarter.
The biggest decline in the history of Maruti
Both domestic and exports declined rampantly in the first quarter. The company said that fall in export has been a major drawback in its history because of the COVID-19. The company did not produce a single vehicle in the quarter. Also, the company did not sell a single car during the lockdown. Production and sales began to moderate at the end of May. Other income of the company increased 57.6 percent to Rs 1,318 crore in the June quarter.
Total expenditure increased by 69 percent to Rs 5,750 crore in the same period. The company’s stock was trading on the BSE with a slight edge. However, it was trading at Rs 6,172, up 36 percent in the June quarter.
Spice Jet incur huge losses in the fourth quarter
Meanwhile, SpiceJet incurred a loss of Rs 807 crore in the fourth quarter of FY 2020. However, the company will release the results for the first quarter of the current financial year. The fourth quarter is from January to March. The company had a profit of Rs 72.5 crore in the same quarter a year ago. The company released the result on Wednesday. However, the company has a net loss of Rs 934 crore for the entire year.
934 crore loss during the whole year
The company said that the non-cash loss in the fourth quarter stood at Rs 473.4 crore. This loss is due to forex loss which was the lease liability due to Ind-AS 116. SpiceJet reported that its revenue grew 13.1 percent to Rs 2,867 crore in the fourth quarter. 2,534.7 crores in the same period a year ago. Other income was Rs 185.7 crore compared to Rs 40.6 crore. Forex loss has been Rs 484 crore.
38 new aircraft added in March quarter
SpiceJet reported that during the quarter, the company added 38 aircraft to its fleet. It ran an average of 570 daily passenger flights before COVID. SpiceJet chairman Ajay Singh said that there have been two main factors influencing our performance. One of the reasons for this is the removal of the Corona and the other 737 Max.