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Daimler India’s losses in FY21 widen amid pandemic woes

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The Indian subsidiary of Daimler AG, the world’s largest industrial automobile maker, has registered a web lack of Rs 426 crore for the fiscal yr ended March 2021, the fourth consecutive yr when the corporate has remained within the purple.

The loss was virtually 4 instances the earlier yr, as weak financial progress in the course of the fiscal yr and the pandemic-induced lockdown crippled truck gross sales in India.

Income for fiscal 2021 declined 10% to Rs 5,302 crore, based on the corporate’s submitting with the Ministry of Company Affairs, accessed via enterprise data platform Tofler.

Daimler India Industrial Autos (DICV), nonetheless, delivered a second consecutive yr of working revenue, as exports helped de-risking operations.

A DICV spokesperson instructed ET your complete Indian CV business has confronted monumental challenges by way of altering laws, disrupted provide chains, lockdowns, escalating uncooked materials prices and extra.

The corporate on its half navigated this “good storm” by innovating to deliver down prices with out compromising on high quality, and by aggressively increasing the product portfolio to draw extra clients, the spokesperson mentioned.

It continues to make vital investments into digitalisation, R&D, infrastructure and repair community growth.

On the monetary facet, DICV generated earnings earlier than curiosity, tax, depreciation and amortisation in each fiscal 2021 and 2020, regardless of the pandemic.

“DICV stays utterly dedicated to the Indian market and sees clear indicators of revival within the economic system. With demand selecting up and international restrictions easing, we count on even higher outcomes going ahead,” mentioned its spokesperson.

Since launching the BharatBenz model in 2012, Daimler India Industrial Autos has offered over 120,000 industrial automobiles regionally. On the export facet, greater than 40,000 automobiles, 8,000 utterly knocked-down kits and 170 million components have been exported to over 60 markets.

The corporate’s export order books are full for the following six months, underlining how DICV is a rising export hub for the worldwide Daimler truck community.

Whereas export gross sales assist steadiness the ups and downs of the home market, DICV has additional diversified with shared providers to de-risk home operation. In October 2020, the corporate opened a brand new, 20,000-sq-ft workplace that homes as much as 165 workers and is devoted to its shared providers enterprise.

This ‘International Functionality Centre’ exports a variety of end-to-end options together with low-cost automation, digital improvements and R&D providers.

Reviewing the monetary yr, its administrators’ report famous that the automotive business was closely impacted as a result of Covid-19 pandemic in the course of the first quarter of the monetary yr. Demand progressively picked up within the second quarter and steadied in the course of the third. Nonetheless, the tempo of demand for the yr was dependent upon numerous elements together with containment of the pandemic, common financial revival and likewise numerous measures taken and applied by the federal government, the report mentioned.

The pandemic continued to problem companies in each doable means and amplified present dangers, noticed the report for the final fiscal yr, whereas additionally noting the second wave of Covid-19 originally of this fiscal yr.

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