A weakening industry demand and rising input costs have impacted the financials of India's largest carmaker. Maruti Suzuki has reported...
A weakening industry demand and rising input costs have impacted the financials of India's largest carmaker. Maruti Suzuki has reported a net profit of Rs 1795.6 crore in the Q4 of FY2018-19, down by 4.6 per cent against Rs. 1882.1 crore which is recorded in the same period last year. The carmaker also said its revenue from operations rose by 1.4 per cent to Rs. 21,459.4 crore for the fourth quarter of the financial year 2018-19 as compared to Rs. 21,165.6 crore a year ago. In the same period the sales of the company witnessed a marginal growth of 0.4 per cent selling 428,863 units against a base of 421,383 units.
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Maruti has also said that the entire year for the company was challenging due to adverse foreign exchange rates and increasing commodity prices. Revenues in the Financial Year 2018-19 stood at Rs. 886,301 crore which is a growth of 5.40 per cent over the revenue of Rs. 840,869 crore it recorded in the previous year. However, the company has witnessed a negative growth of 3 per cent last year. Its consolidated profit for the Financial Year 2018-19 is Rs. 76,506 crore against Rs. 78,807 crore which it recorded in the previous financial year.
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Maruti Suzuki has also announced to phase out its diesel vehicles from April 1, 2020.The annual profit of the company has taken a dip despite it posted a sales growth of 5.3 per cent at 17,53,700 units against the base of 17,29,826 units in the domestic passenger vehicle segment. Even light commercial vehicles (LCVs) recorded a growth of 138 per cent selling 23,874 units and the company's annual exports stood at 108,749 units. Company's second plant in Gujarat also led to higher depreciation and the company had to incur promotional expenses to lift the customers' sentiments which in general remained muted. The company is also evaluating the prospects of diesel engines and has decided to phase out its diesel models by April 2020. The life of the recently developed 1.5-litre DDiS 225 engine also depends on the demand for diesel cars in the future.
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