By Kosaku Narioka
Maruti Suzuki India is scheduled to report second-quarter results on Friday. Here’s what you need to know:
NET PROFIT FORECAST: Maruti Suzuki is expected to post a 51% increase in net profit to 31.13 billion rupees ($374.6 million) for the three months ended Sept. 30 on an unconsolidated basis, according to a poll of analysts by FactSet. That’s compared with INR20.615 billion net profit in the year-earlier period.
REVENUE FORECAST: Second-quarter revenue is estimated to have grown 23% from a year earlier to INR369.38 billion, according to the FactSet poll.
WHAT TO WATCH:
–MARGIN: First-quarter net profit margin improved to 8.1% from 4.0% a year earlier thanks partly to lower commodity prices and cost cuts. Investors will be focusing on margin trends as carmakers globally are grappling with inflation.
–PARTS SHORTAGE: While the shortage of chips and other parts that had hit the industry has been easing, insufficient electronic parts weighed on Maruti Suzuki’s vehicle production in its first quarter, when it sold a total of 498,030 vehicles. Investors will be closely watching for any further improvement in the parts shortage.
–EV: Maruti Suzuki plans to start selling its first battery electric vehicle in India in the fiscal year starting in April 2024 and expand the lineup of battery EVs to six models in about seven years. Investors will be focusing on any updates and details on its EV initiatives.
Write to Kosaku Narioka at [email protected]
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