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Maruti Suzuki Q2 Earnings: Profit expected to fall by about 60%

Updated : October 24, 2019 09:14 AM IST

Automobile Major Maruti Suzuki is set to announce its second-quarter results on Thursday. The stock is up almost 40 percent from the August lows. It is now less than 10 percent away from its 52-week high. However, the September quarter is unlikely to be good for the company due to weak demand, high inventory, record-high discounts, etc.

Here's what to expect from the company:

  • The revenue is expected to fall 24 percent to Rs 16,760 crore.

  • The EBITDA is likely to fall by about 50 percent.

  • The profit is expected to fall by about 60 percent.

  • Price hikes were undertaken by the company because of which realisations will be higher by about 5 percent.

  • The margins will contract because of the high amount of discounts that the company has undertaken.

  • The fixed cost has also gone up because of the new Gujarat plant where the volumes were on the lower side.

  • The stock is still at par with its historic valuation, so there is more legroom on the upside if there is a positive surprise.
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