Maruti Suzuki India, one of the leading automotive manufacturers in the country, is set to release its first-quarter results on Monday. Here are the key details:
Net Profit Forecast:
According to a poll conducted by FactSet, Maruti Suzuki's net profit for the quarter ended June is expected to have more than doubled to INR 24.67 billion ($299.5 million) on an unconsolidated basis. This significant growth would be compared to a net profit of INR 10.13 billion in the same period last year.
Based on the FactSet poll, first-quarter revenue is estimated to have increased by 20% to INR 318.48 billion.
What to Watch:
Parts Shortage: In the previous fiscal year that ended in March, Maruti Suzuki faced a shortage of electronic parts, leading to a production delay of approximately 170,000 units. Although sales still grew by 19% to 1.97 million units, investors will closely monitor any lingering impact of the parts shortage on sales growth.
Margin: Maruti Suzuki's net profit margin for the fourth quarter improved slightly to 8.5% compared to the previous year's 8.4%. This improvement was attributed to higher sales volume, improved capacity utilization, and reduced sales-promotion expenses. Investors will focus on examining margin trends, considering the rising operational costs faced by automakers worldwide.
Material Cost: In the fourth quarter, material costs accounted for 76.1% of net sales, slightly higher than the previous quarter's 75.7%. Investors will be attentive to any changes in material costs.