Maruti Suzuki reported a consolidated net profit of Rs 1,376.8 crore for June quarter as compared to Rs 2,015.1 crore from the same period previous year. The company attributed this to lower sales volume and higher depreciation expenses.
Consolidated total revenue from operations stood at Rs 19,732.6 crore as against Rs 22,470.8 crore in the year-ago quarter.
Analysts at Edelweiss had expected Maruti to report a 16 per cent dip in revenues on YoY basis to Rs 18,626.9 crore, while net profit was seen slipping 38 per cent to Rs 1,224.2 crore. READ MORE HERE
Maruti Suzuki reported standalone net profit of Rs 1,435 crore for June quarter, down 27.3 per cent from the year-ago's Rs 1,975.3 crore profit. Revenue from operation came in at Rs 18,735.2 crore, down 14.1 per cent on a YoY basis.
The company posted Ebitda of Rs 2048 crore, down 38.5 per cent from Q1FY19's Rs 3,330 crore. Margin were down 440 bps at 10.4 per cent as compared to 14.8 per cent YoY.
"Broadly, results were in-line with our expectations. PAT level was slightly better because of lower tax. The company has done reasonably well in the weak operating environment. It must be noted that the company had a high base of last year both in terms of volume and margin. Moreover, during the quarter, it indulged in inventory reduction. So, in that context, the performance is rock-solid," said Jinesh Gandhi, auto analyst at Motilal Oswal Financial Services (MOFSL).
The company's volume declined 17.9 per cent to 402,594 units in the quarter. Sales in the domestic market stood at 374,481 units, lower by 19.3%. Exports were at 28,113 units for the quarter. Realisation came in at Rs 4.92 lakh/unit.
The management said going forward, strong product portfolio and commodity prices were the positives for the company while interest rates, fuel prices, foreign exchange, and uncertain demand environment could work as headwinds.