Why did Maruti see such a sharp fall in profits in the quarter ended Sep-21?

Auto sector was always expected to be under pressure and that became apparent from the quarterly results of Maruti Suzuki. It was therefore hardly surprising that Maruti Suzuki reported a 66% slump in Q2 net profits at Rs.487 crore on account of an unprecedented spike in global commodity prices. The other major factor responsible for this loss is the acute shortage of semiconductors, which are key components of modern day cars.

On a yoy basis, the cost of inputs like raw materials, fuel and power soared 80%. Maruti has revealed that it had more than 2 lakh pending customer orders predominantly for CNG vehicles due to the spurt in the price of petrol and diesel. There was a clear shift towards less expensive and greener fuels However, Maruti managed to perform extremely well on the exports front selling 59,408 units, the best in any single quarter in the history of Maruti.