Suzuki Motor Corp said Monday that its consolidated operating profit for the first quarter ended June 30 fell from 61.4 billion yen (97.9%) 1.3 billion yen, hit by a drop in sales in its largest market, India, which continued to operate the coronanvirus pandemic.
The company’s consolidated sales fell 482.2 billion yen (53.1 percent) to 425.3 billion yen in the April-June period, Suzuki Motor Corp said in a statement.
“This is due to the spread of the new coronavirus pandemic, which has had an effect on plant operations at the company’s production sites in countries such as Japan, India, Pakistan and Hungary, as well as on sales in countries around the world,” he said.
The company said that 15.4 billion yen equivalent to ongoing expenditures similar to the suspension of production due to the blockade in countries such as India and Hungary were recorded as an ordinary loss in the era under review.
Suzuki said overall sales in the automotive industry (four-wheeled vehicles) fell from 449.6 billion yen (55% year-on-year) to 367.5 billion yen in the first quarter ended June 30, 2020.
The company’s sales fell 83% in India, 27.6% in Japan and 54.3% in other regions year after year, Suzuki Motor Corp said.
Suzuki said that due to declining sales, its operating profit from the automotive business in the April-June era fell from 54.6 billion yen to 24 million yen year after year.
Due to the COVID-19 scenario in India, the company provided advertising forecasts.
“While the new coronavirus pandemic is spreading to the company’s Indian market, lately we cannot rationally calculate forecasts. As a result, the announcement of consolidated operating profit forecasts is undetermined,” he added.
Maruti Suzuki India (MSI), which is majority owned through Suzuki, has been affected due to coronavirus blockades in the country.
For the first quarter ended June 30, the auto primaries reported their first quarterly loss since it went public 17 years ago with a consolidated loss of Rs 268.3 crore, hit hard by the coronavirus pandemic.
The main automotive company, which was indexed in July 2003, recorded a consolidated net source of revenue of Rs 1376.8 in the quarter April-June 2019-20.
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