Maruti Suzuki Q4 profit declines 10% YoY to Rs 1,166 cr, misses estimates

Maruti Suzuki India's net profit slipped on account of lower sales volume and increase in commodity prices

India’s largest car manufacturer Maruti Suzuki India on Tuesday reported a standalone net profit of Rs 1,166.1 crore for the quarter ended March 31, 2021 (Q4FY21). It was down 9.72 per cent from previous year’s profit of Rs 1,291.7 crore on account of lower sales volume, increase in commodity prices, adverse foreign exchange movement, and lower non-operating income.
 

In the December quarter, PAT stood at Rs 1,941.4 crore. On a consolidated basis, the net profit slipped 6.1 per cent to Rs 1,241.1 crore.
 

The standalone revenue for the quarter, meanwhile, came in at Rs 24,023.7 crore, clocking a growth of 32 per cent YoY from Rs 18,198.7 crore. Sequentially, it was up 2.4 per cent from Rs 23,457.8 crore.
 

The numbers missed Street estimates by a huge margin as analysts had projected the PAT to grow anywhere between 37 per cent and 51 per cent YoY.  Revenue, on the other hand, was expected to rise upwards of 30 per cent YoY. READ HERE
 

Operational performance
 

The company sold a total of 492,235 vehicles during the quarter, up 27.8 per cent compared to the same period previous year. Sales in the domestic market stood at 456,707 units, growing by 26.7 per cent. Exports, meanwhile, were at 35,528 units, higher by 44.4 per cent. 
 

Consequently, Maruti Suzuki India’s Ebitda (earnings before interest, tax, depreciation, and amortisation) came in at Rs 1,991 crore for the quarter under review relative to Rs 1,671.4 crore reported in Q4FY20. Compared with December quarter’s Rs 2,226.1 crore, it was down 10.56 per cent. 
 

Against expectations, Ebitda margin contracted on, both, yearly and quarterly basis to 8.3 per cent. It was 9.2 per cent in Q4FY20 and 9.5 per cent in Q3FY21.
 

The operating profit for the quarter was at Rs 1,250.1 crore, clocking a growth of 72.8 per cent over the same period previous year on account of higher sales volume and cost reduction efforts despite steep commodity price increase.
 

The Board has recommended a final dividend of Rs 45 per for the financial year 2020-21. 

FY20 performance

For the full fiscal of 2020-21, Maruti reported sales of 1,457,861 units, lower by 6.7 per cent compared to the previous year. In FY21, the sales in the domestic market stood at 1,361,722 units, down 6.8 per cent YoY while exports were at 96,139 units, down 5.9 per cent on year. 

The revenue for FY21 declined 7.2 per cent on year to Rs 66,562.1 crore, while net profit declined by 25.1 per cent to Rs 4,229.7 crore due to the Covid-19 pandemic, the company said in a statement.
 

Shares of the firm tumbled 1.5 per cent in the intra-day deals after the abysmal Q4 result and eventually ended 1.24 per cent lower on the BSE at Rs 6,558. In comparison, the S&P BSE Sensex ended at 48,944 levels, up 1.15 per cent.