Auto major Maruti Suzuki on Wednesday reported 27.7 per cent year-on-year fall in consolidated profit at Rs 1,322.3 crore for the March quarter of FY20 (Q4FY20) while revenue dipped 15.2 per cent to Rs 18,207.7 crore. The company had posted revenue of Rs 21,473.1 crore and profit of Rs 1,830.8 crore in the corresponding quarter of last year.
During the quarter, Maruti sold a total of 385,025 vehicles, lower by 16 per cent over the same period previous year. In domestic market, the company sold 360,428 vehicles, down 16 per cent YoY. Exports were at 24,597 vehicles, down 16.9 per cent over the same period previous year. The company's directors also recommended a dividend of Rs 60 per share for FY20. "The ensuing annual general meeting is scheduled to be held on Aogust 26, 2020," the company said in a release to the exchanges.
Analysts had expected India's largest carmaker's Q4 profit to fall anything from 18 per cent to 40 per cent on a year-on-year basis, while revenue decline was seen in early teens, largely led by sharp fall in volumes.
"Indian auto companies are likely to report dismal 4QFY20 results given the sharp decline in sales volumes. Margins should also remain under pressure due to the adverse operating leverage effect on account of lower top-line." wrote analysts at Jefferies in a result preview note. READ EXPECTATIONS HERE
Maruti's Q4 earnings before interest, tax, depreciation, and ammortisation (Ebitda) came in at Rs 1,546.4 crore while Ebitda margin stood at 8.5 per cent.
The company said lower capacity utilisation and higher sales promotion expense were the main headwinds for the margin movement while lower operating expenses, cost reduction efforts and lower corporate tax rate were the positive factors.
The company reported tax expense of Rs 283.4 crore for the recently concluded quarter as compared to Rs 516.6 crore in Q4FY19.
Meanwhile, after being shuttered for more than a month following the nationwide lockdown, automobile factories and their suppliers soon start cranking out models, parts, and sub-assemblies, as the government allows industrial activity to restart in select regions of the country. Maruti Suzuki restarted production at its Manesar plant on May 12. READ ABOUT IT HERE