Sales to emission norms: Issues Maruti Suzuki investors should watch for

Management anticipates 4 - 8 per cent sales growth in FY20; analysts say this is the weakest guidance in at least five years

When the market leader among passenger vehicles - Maruti Suzuki (MSIL) - says 2019-20 (FY20) will be an unpredictable year, investors too, should keep their expectations mellow from the MSIL stock.

MSIL stock, reacting to weak results, lost about 1.5 per cent in Thursday’s trade. While revenues and net profit at Rs 21,460 crore and Rs 1,796 crore, respectively, were in line with Bloomberg consensus, the question is how much of March quarter’s (Q4’s) pain will spill over into FY20.

Operating margins, which fell from 14.2 per cent a year ago to 10.6 per cent in Q4, have little upside