Maruti Suzuki Q1 preview: Demand slowdown, low volumes to drag earnings

Investors should watch out for an update on the demand scenario, channel inventory, discounting trends and new launches as well as demand trend in urban and rural areas

The country's largest carmaker Maruti Suzuki (MSIL) will report its June quarter earnings on Friday. Analysts expect a weak quarter for Maruti due to the slowdown in demand and plummeting volumes which would offset the gains due to higher net realization.

During the quarter, MSIL volumes declined around 18 per cent year-on-year (YoY) and around 12 per cent quarter-on-quarter (QoQ) to 402,594 units.

Edelweiss expects Maruti to report a 16 per cent dip in revenues on YoY basis to Rs 18,626.9 crore while net profit may slide 38 per cent to Rs 1,224.2 crore. The carmaker had posted a profit of Rs