Maruti Suzuki India Ltd shares dropped two per cent in trade to Rs 6,880 apiece after the company announced its earnings for the quarter ended March. Here are key takeaways from Maruti Suzuki’s Q4 numbers:
- Net profit drops 5% year-on-year to Rs1,795.6 crore in the March quarter due to weak operating performance and muted sales volume.
- Standalone revenue from operations grew a tepid 1.4% y-o-y to Rs21,459.4 crore in the quarter, with sales volume slipping 0.7%.
- Maruti sold 458,479 vehicles during the quarter. Realisation per vehicle dropped to Rs4.52 lakh in the March quarter against Rs 4.59 lakh in the previous quarter ended December 2018 and Rs 4.58 lakh in the year-ago March quarter.
- At operating level, Ebitda (earnings before interest, tax, depreciation and amortisation) declined 25% y-o-y to Rs2,263.4 crore.
- Ebitda margins fell 369 basis points to 10.55% in the March quarter.
- Other income climbed 46% y-o-y to Rs867.7 crore in the March quarter.
- Finance cost fell sharply to Rs8.8 crore from Rs273 crore in the year-ago quarter.
- Tax expenses were also down 31% to Rs516.5 crore in quarter ended March compared with a year ago.
- Maruti’s board recommended a dividend of Rs80 per share for 2018-19, the same as that of last year.
- Maruti said the March quarter earnings were hit by adverse foreign exchange rates and commodity prices. Higher depreciation and higher sales promotion expenses were partially offset by cost-reduction efforts, it added.
- Maruti said it aims for around 4% growth in sales and production in FY20. It also plans to discontinue diesel light commercial vehicles (LCV) from next year under new BS VI emission rules.
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