Maruti Suzuki India (MSI) on Thursday reported a 5 per cent year-on-year decline in its net profit at Rs 1,795.6 crore recorded in the January-March quarter, dented by weak operating performance and muted sales volume.
The drop, however, was lower than street estimates.
MSI, the country’s largest passenger vehicle manufacturer, was also able to beat estimates with regard to revenue from operations, which grew by 1.4 per cent y-o-y to Rs 21,459.4 crore with sales volume de-growth of 0.7 per cent on a y-o-y basis.
However, the company missed estimates on the Ebitda and margin front.
Earnings before interest, tax, depreciation and amortisation (Ebitda) declined 25 per cent y-o-y to Rs 2,263.4 crore and margin contracted 365 bps to 10.55 per cent during the quarter, hit by adverse forex variations.
Realisation per vehicle dropped to Rs 4.52 lakh during the quarter against Rs 4.59 lakh in the preceding quarter and Rs 4.58 lakh in same period last year.
“This quarter was marked by adverse foreign exchange rates and commodity prices, higher depreciation and higher sales promotion expenses partially offset by cost reduction efforts” the company said.
“We sold a total of 4,28,863 units in the domestic market, a growth of 0.4 per cent. This comprised 4,21,383 units in passenger vehicle segment, a decline of 0.4 per cent and 7,480 units of LCV, a growth of 83.6 per cent over previous year. Exports were at 29,616 units,” MSI said. —FE