Maruti Suzuki India will report its fourth-quarter earnings on Thursday and analysts expect the country’s top-selling carmaker to post a fall in net profit for the third straight quarter.
- This time around as well, analysts are expecting flat revenues following a third straight quarter of decline in volumes, which are likely to fall about 0.7 percent.
- Margins are expected to fall about 280 basis points (bps) to 12.5 percent. Last quarter, the margins hit a five-year low of 9.8 percent. On a sequential basis, there could be some improvement because the discounts were not as high as the preceding quarter.
- Profits are expected to drop about 13 percent on a Y-o-Y basis.
- EBITDA likely to decline 12.5% on-year due to rising commodity costs, increase in discounts due to weak demand and inclusion of fixed costs.
- The stock hit a 52-week low of Rs 6,324 this quarter.