India's largest car-manufacturer Maruti Suzuki India reported Q4 results below street expectations as net profit came in at Rs 1,882.1 crore, up 10% on year, pulled down due to a higher tax expense in the quarter.
India’s largest car-manufacturer Maruti Suzuki India reported Q4 results below street expectations as net profit came in at Rs 1,882.1 crore, up 10% on year, pulled down due to a higher tax expense in the quarter. A CNBC TV18 analyst poll had estimated net profit at Rs 2,049 crore. The company had reported net profit of Rs 1,476.2 crore in the same period previous fiscal. The total net revenues jumped 14.4% on year to Rs 20,594.3 crore, in line with estimates. The company said that increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year impacted net profit. The company notes that improvements made in operating margins were partially offset by adverse commodity prices. Reacting to the below par results, Maruti Suzuki shares plunged nearly 2%. We take a closer look at the results, and bring to you key figures in a nutshell.
Net profit in Q4 (2017-18) came in at Rs 1,882.1 crore, up 10 per cent compared to Rs 1,476.2 crore reported in the the same period in previous fiscal. Increase in effective tax rate impacted net profit.
The company has reported a 14.4% increase in net sales to Rs 20,594.3 crore in January-March quarter. The sales volume has also seen a 14.4% rise to 4,61,733 vehicles in the quarter.
The EBIT came in at Rs 2,312.5 crore, up 24.4% on year.” The operating profit was Rs 23,125 million, a growth of 24.4 per cent over the same period previous year on account of higher sales volume, cost reduction efforts, partially offset by adverse commodity prices & higher advertisement expenses,” Maruti Suzuki said.
The profit before tax moved to Rs 2,634.4 crore, up by 15.3%. Increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year impacted net profit.
The company has declared a dividend of Rs. 80 per share for 2017-18. The dividend in 2016-17 was Rs. 75/- per share of face value of Rs. 5/-, it said in the note.
To commemorate its 35th Anniversary, the company has planned to establish an Employee Welfare Fund, and a Trust to promote Scientific Research and Technology in India. “After formal approval by the Board, the Fund and the Trust shall be established later this year. Thereafter MSIL will contribute 1% of the Profit After Tax of the previous year to each of the Fund and the Trust,” the company noted.