India's largest carmaker Maruti Suzuki India has clocked a 9.7 per cent year-on-year (YoY) decline in profit for the quarter ended March 2021, impacted by lower-than-expected operating performance and sharp fall in other income, but revenue was strong.
Profit during the quarter fell to Rs 1,166.1 crore compared to Rs 1,291.7 crore in the corresponding period, missing analysts' expectations.
Revenue from operations in Q4 FY21 stood at Rs 24,023.7 crore, up 32 percent versus Rs 18,198.7 crore in Q4 FY20 backed by strong double-digit growth in sales.
Profit was estimated at Rs 1,668 crore on revenue of Rs 23,624 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Maruti Suzuki sold 4,92,235 vehicles in the March quarter, up 28 percent YoY. "Sales in the domestic market stood at 4,56,707 units, growing by 26.7 per cent. Exports were at 35,528 units, higher by 44.4 per cent. It may be recalled that in Q4 of FY20 there was a significant decline in the sales volume largely owing to COVID-19 lockdown," said Maruti.
At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) grew 28.8 percent year-on-year to Rs 1,991.4 crore on account of higher sales volume and cost reduction efforts despite steep commodity price increase.
EBITDA margin contracted 20 bps YoY to 8.3 percent in the quarter ended March 2021. The margin performance was impacted by adverse commodity prices, adverse foreign exchange fluctuation and lower fair value gains on invested surplus, though supported by improved capacity utilization, lower sales promotion expenses and increase in selling prices, and cost reduction efforts, said the company in its BSE filing.
The operating performance missed analysts' expectations. A CNBC-TV18 poll estimates for EBITDA and margin were at Rs 2,168 crore and 9.1 percent in Q4FY21.
Gross profit margin at 26.1 per cent in Q4FY21 declined 360 bps YoY and 140 bps QoQ.
Other income for the quarter fell sharply to Rs 89.8 crore in March quarter 2021, compared to Rs 880.4 crore in Q4FY20, owing to mark-to-market loss on invested surplus.
Tax expenses for the quarter halved to Rs 141.4 crore in March quarter, from Rs 284 crore in the year-ago quarter.
Maruti Suzuki said in line with the financial performance of the year and considering uncertain business environment, the board of directorsrecommended a dividend of Rs 45 per share for FY21.
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The stock price fell 13.2 percent in 2021 underperforming Nifty Auto that gained 4.87 percent in the same period.