Maruti Suzuki will be reporting its quarterly results on Friday and analysts' expect a sluggish set of numbers this time around.
- It is going to be a slow quarter this time around. The volumes for the company have fallen both year-on-year (YoY) and quarter-on-quarter (QoQ). YoY volumes are down by 0.6 percent, QoQ they are down by 11 percent. So it is going to be a slow quarter for them.
- Their management had indicated this to the street earlier, they cut down their full year guidance from double digits to 8 percent growth stating that there is weakness in demand because of a couple of reasons primarily the higher interest cost, the higher insurance cost as well as overall weakness in retail sales for the industry as a whole will be impacting, higher fuel cost as well is something they had cited as a reason for which they have scaled down their guidance.
- All of that will put pressure on margins because inventory pile up has resulted in high amount of discounts. Discounts have been at an all-time high for the industry and that will mean pressure on margins.
- The margins are expected to fall to about 13.3 percent versus 15.8 percent same time last year and revenue growth will be measly just about 1.6 percent.