Maruti Suzuki India's Fourth-Quarter Net Profit Fell 6.1% -- Earnings Review

By Kosaku Narioka

Maruti Suzuki India Ltd. reported its fourth-quarter results on Tuesday. Here's what you need to know.

NET PROFIT: Maruti's net profit fell 6.1% from a year earlier to 12.41 billion Indian rupees ($166.0 million) for the quarter ended March 31. On a standalone basis, net profit was INR11.66 billion, below the estimate of INR17.75 billion in a FactSet poll of analysts.

REVENUE: Revenue jumped 32% to INR240.345 billion. On a standalone basis, revenue was INR240.24 billion, exceeding the estimate of INR236.35 billion in the FactSet poll.

WHAT WE WATCHED:

--MARGIN: Standalone net profit margin deteriorated to 5.1% in the fourth quarter from 7.5% a year earlier. Higher commodity prices, adverse foreign exchange movements and other negative factors offset positive factors such as improved capacity utilization, lower promotion expenses and higher sales prices.

--DIVIDEND CUT: The board recommended a final dividend of INR13.59 billion, or INR45 per share, for the year ended March 31, down from INR18.125 billion, or INR60 per share, for the previous year.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

04-27-21 0609ET