Maruti Suzuki Q2 net profit skids 65% to Rs 475 cr as chip shortage hurts

MSIL Chairman R C Bhargava said at 80.4 per cent of net sales, material costs stood at an all-time high at the end of the September quarter

India’s largest carmaker, Maruti Suzuki India (MSIL), on Wednesday reported a 65.35-per cent year-on-year plunge in net profit at Rs 475.3 crore for the July-September quarter of 2021-22, compared with Rs 1,371.6 crore in the same quarter last financial year (2020-21).

The company said the profit was primarily influenced by a record rise in input costs and decline in production due to shortage of semiconductor chips.

However, the company expects relief on both fronts, given that production is expected to increase in November and there are signs of prices of precious metals softening to some extent. Input cost was primarily driven by