Tough times for Maruti Suzuki! Indias biggest carmakers Q4 down 4.60% at Rs 1,795.6 crore; this is what impacted earnings
A Bloomberg poll of experts predicted Maruti Suzuki Q4 PAT to come in at Rs 1,760 crore.
Maruti Suzuki share price took a massive hit after the company presented its March 2019 quarter (Q4FY19) result. The automaker witnessed a decline of 4.59% in net profit to Rs 1,795.6 crore during Q4FY19, compared to Rs 1,882.1 crore in the corresponding period of previous year. Interestingly, Q4FY19 PAT jumped by a huge 20.56% as against Rs 1,489.3 crore recorded in Q3FY19. The PAT was in line with analysts estimates. A Bloomberg poll of experts had predicted Maruti Suzuki PAT to come in at Rs 1,760 crore.
Meantime, Maruti's revenue from operations was at Rs 21,459.4 crore in Q4FY19. Revenue was slightly up by 1.38% versus Rs 21,165.6 crore in Q4FY18. But rose by 9.10% from Rs 19,668.3 crore in Q3FY19. The poll had expected revenue to come in at Rs 21,450 crore in Q4FY19.
Maruti's net sales for Q4FY19, stood at 207,375 units subdued as against 205,943 units of Q4FY18, but higher by 9.60% from 189,264 units in Q3FY19.
In its financial audit report, Maruti said, "This was a difficult year because of adverse foreign exchange rates and increase in commodity prices. The second SMG plant in Gujarat was commissioned leading to a higher depreciation expense. The overall market was slow and had to be supported by higher sales promotion expenses. This was partially offset by cost reduction efforts."
On BSE, Maruti's share ended at Rs 6868.05 per piece down by Rs 156.30 or 2.23%. The company has also touched an intraday low of Rs 6865 per piece.
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