Maruti Suzuki Q4 net profit up 10% to Rs 1,882 crore, misses market estimates
MSIL's total income jumped 10 per cent to Rs 21,760.60 crore during the quarter under review compared to Q3 FY18. But the year-on-year growth was far more muted at 3 per cent, up from Rs 21,200.30 crore in Q4 FY17.
- Apr 27, 2018,
- Updated Apr 27, 2018 5:25 PM IST
The good news is that Maruti Suzuki India (MSIL), India's largest car manufacturer, reported a net profit of Rs 1,882 crore for the fourth quarter (Q4) of the last fiscal. That's a jump of 10 per cent over the corresponding period last year. The bad news is that the auto company, according to Moneycontrol, missed D-Street estimates by a wide margin. This led the stock price to crack as much as 4 per cent and is currently trading at Rs 8,777.95 apiece. According to MSIL, the increase in effective tax rates impacted its net profit. Here's a look at the other key financial results.
Total income
MSIL's total income jumped 10 per cent to Rs 21,760.60 crore during the quarter under review compared to Q3 FY18. But the year-on-year growth was far more muted at 3 per cent, up from Rs 21,200.30 crore in Q4 FY17.
Sales
The company sold a total of 461,773 vehicles during the March quarter, a growth of 11.4 per cent over the same period of the previous year. The quarter-on-quarter jump stood at 7.1 per cent. Sales in the domestic market stood at 427,082 units, a growth of 11.6 per cent while exports were at 34,691 units. In the last financial year, in total the company sold 17,79,574 vehicles, a jump of 13.4 per cent year-on-year.
During the March quarter, MSIL registered net sales of Rs 20,594.30 crore, up 14.4 per cent from Rs 20,423 crore in the same period the previous year.
Operating profit
The company reported operating profit at Rs 2,312.50 crore, a growth of 24.4 per cent over the same period in 2017. According to MSIL, this was on account of higher sales volume, cost reduction efforts, partially offset by adverse commodity prices, and higher advertisement expenses.
Dividend
"The board of directors recommended a dividend of Rs 80 per share of face value Rs 5 for 2017-18. The dividend in 2016-17 was Rs 75 per share of the face value of Rs 5," the company said in a statement.
The board has also given its in-principle approval to establish an employee welfare fund as well as a trust to promote scientific research and technology in the country to commemorate the 35th anniversary of MSIL. According to the company, these will be established later this year after formal approval by the board. "Thereafter MSIL will contribute one per cent of the profit after tax of the previous year to each of the fund and the trust," it added.
What analysts say
"We continue to like MSIL's unique moats, although valuation leaves little room for an upside," the portal quoted Abhishek Jain, analyst at HDFC Securities. "We remain positive on MSIL's growth story based on (1) steady volume growth plus increase in PV market share (2) Increasing ASP, led by expanding portfolio in the premium segment, (3) incremental volumes from the Gujarat facility (4) Ramp-up in rural demand and 5) healthy ROE/ROCE (25% in FY19/20E) and free cash flows," he added.
The good news is that Maruti Suzuki India (MSIL), India's largest car manufacturer, reported a net profit of Rs 1,882 crore for the fourth quarter (Q4) of the last fiscal. That's a jump of 10 per cent over the corresponding period last year. The bad news is that the auto company, according to Moneycontrol, missed D-Street estimates by a wide margin. This led the stock price to crack as much as 4 per cent and is currently trading at Rs 8,777.95 apiece. According to MSIL, the increase in effective tax rates impacted its net profit. Here's a look at the other key financial results.
Total income
MSIL's total income jumped 10 per cent to Rs 21,760.60 crore during the quarter under review compared to Q3 FY18. But the year-on-year growth was far more muted at 3 per cent, up from Rs 21,200.30 crore in Q4 FY17.
Sales
The company sold a total of 461,773 vehicles during the March quarter, a growth of 11.4 per cent over the same period of the previous year. The quarter-on-quarter jump stood at 7.1 per cent. Sales in the domestic market stood at 427,082 units, a growth of 11.6 per cent while exports were at 34,691 units. In the last financial year, in total the company sold 17,79,574 vehicles, a jump of 13.4 per cent year-on-year.
During the March quarter, MSIL registered net sales of Rs 20,594.30 crore, up 14.4 per cent from Rs 20,423 crore in the same period the previous year.
Operating profit
The company reported operating profit at Rs 2,312.50 crore, a growth of 24.4 per cent over the same period in 2017. According to MSIL, this was on account of higher sales volume, cost reduction efforts, partially offset by adverse commodity prices, and higher advertisement expenses.
Dividend
"The board of directors recommended a dividend of Rs 80 per share of face value Rs 5 for 2017-18. The dividend in 2016-17 was Rs 75 per share of the face value of Rs 5," the company said in a statement.
The board has also given its in-principle approval to establish an employee welfare fund as well as a trust to promote scientific research and technology in the country to commemorate the 35th anniversary of MSIL. According to the company, these will be established later this year after formal approval by the board. "Thereafter MSIL will contribute one per cent of the profit after tax of the previous year to each of the fund and the trust," it added.
What analysts say
"We continue to like MSIL's unique moats, although valuation leaves little room for an upside," the portal quoted Abhishek Jain, analyst at HDFC Securities. "We remain positive on MSIL's growth story based on (1) steady volume growth plus increase in PV market share (2) Increasing ASP, led by expanding portfolio in the premium segment, (3) incremental volumes from the Gujarat facility (4) Ramp-up in rural demand and 5) healthy ROE/ROCE (25% in FY19/20E) and free cash flows," he added.