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Maruti Suzuki has announced its financial results for FY2019-20 and the fourth quarter of the same period. The company's net profit stood at Rs. 56,506 million, lower by 24.7% over the same period in the previous year. The company's net sales amounted to Rs. 7,16,904 million, which is 13.7% less compared to the previous year.
The carmaker sold 15,63,297 vehicles during the year. That is 16.1% less compared to the same period in the previous year. In the domestic market, Maruti sold 14,61,126 units, which is 16.7% less than during the same period in the previous year. Exports also dropped by 6% to 1,02,171 units.
According to the company, lower sales volume, high sales promotion expenses and higher depreciation expenses could be attributed to the drop in net profit.
In Q4 (January-March 2020), Maruti sold 3,85,025 vehicles, which was a fall of 16% compared to the same period in the previous year. Domestic sales dropped by 16% to 3,60,428 units, while exports stood at 24,597 units, a fall of 16.9% compared to the previous year.
Net sales in Q4 stood at Rs. 1,71,857 million (a drop of 17.1%), while net profit stood at Rs. 12,917 million, which is 28.1% less compared to the same period in the previous year.
Link to Team-BHP News
Suzuki's profit beats estimate, steps up dividend.
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Profit came in at 215.1 billion yen ($1.99 billion) for the year to March, down 34% from a year ago and its lowest since the year ended in March 2016. But it was higher than an average estimate of 201 billion yen profit drawn from 15 analysts
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In India, where it sells roughly one in every two cars sold through its majority stake in Maruti Suzuki India Ltd, the automaker sold 1.44 million units, down 18% on the year. India accounts for just over half of Suzuki's global car sales.
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I feel Maruti’s decline has started. They seriously have to work on the safety of their cars. When I was looking to buy cars I quickly realised Maruti Brezza didn’t have ESP or 6 air bags and the interiors where so poor for a 10 lakh+ car. I loved the Baleno but I could not fathom the idea that a tennis ball hit could make dents in the body work.
The other thing is the innovation by the Koreans. Hyundai has mastered every aspect of automobile sales. I don’t see any reason why one should buy Maruti when Hyundai products are considerably better in most aspects including the dealer and service networks.
Maruti's decline? Err no. Au Contraire, MS will boomerang back to its defacto standing when more people decide public transport isn't worth the risk of catching an infection anymore and more and more people who own 2 wheelers or don't own a vehicle at all will decide to buy an inexpensive 4 wheeler. And whose showroom will these people flock to in the next few months? Maruti ofcourse. I'd say even Renault will be able to lure some of those customers away with their low cost vehicles like the Kwid,Triber etc. The Hyundai Santro, although a good city commuter isn't doing much for Hyundai and the other brands have nothing on sale this side of 5 lakhs(except Datsun who will be lucky to last 3 years from now).
Quote:
Originally Posted by Godzilla
(Post 4812142)
I feel Maruti’s decline has started. They seriously have to work on the safety of their cars. When I was looking to buy cars I quickly realised Maruti Brezza didn’t have ESP or 6 air bags and the interiors where so poor for a 10 lakh+ car. I loved the Baleno but I could not fathom the idea that a tennis ball hit could make dents in the body work.
The other thing is the innovation by the Koreans. Hyundai has mastered every aspect of automobile sales. I don’t see any reason why one should buy Maruti when Hyundai products are considerably better in most aspects including the dealer and service networks.
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Oh, really? Other than the the perceived safety, is Hyundai better in terms of safety when cars like Santro, i10 fared very poor? And Hyundai service and dealers are better than Maruti? You may be running one of them.
Time and again doomsayers have said the same many times. And then we have seen Maruti's market share keep on increasing.
Quote:
Originally Posted by Nithesh_M
(Post 4812149)
Maruti's decline? Err no. Au Contraire, MS will boomerang back to its defacto standing when more people decide public transport isn't worth the risk of catching an infection anymore and more and more people who own 2 wheelers or don't own a vehicle at all will decide to buy an inexpensive 4 wheeler.
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Well this is a tough bet and even I am on the fence on these opinions. Things could go either ways for Maruti as the post above and below.
1. It could be that the lesser reliance on public transport and the fear of infection could lead to many families moving to small cars, which will benefit the sales of the WagonR, Celerio and the Espresso if market widely accepts the shape. To add to this are good financing schemes that is being offered to people.
2. However it could also go the other way easily. People might not want to invest in a car at the moment and due to increased practices of work from home in the IT and many other industries, the need of a car itself might come down. Families which were earlier owning more than one car might consolidate for a short period of time and do good with one car and after a couple of months or a year could think of making a purchase. The fear of a recession will also be lurking around the corner.
Quote:
Originally Posted by Godzilla
(Post 4812142)
I feel Maruti’s decline has started.
..
I don’t see any reason why one should buy Maruti when Hyundai products are considerably better in most aspects including the dealer and service networks.
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I am not sure of the decline in general across all segments, but I still will bet on Maruti for the sub 6L rupee price segment. There is no strong competition and while the Santro has not been received so well, the i10 has been pushed up to higher segments over time.
Quote:
Originally Posted by Godzilla
(Post 4812142)
I feel Maruti’s decline has started. They seriously have to work on the safety of their cars. When I was looking to buy cars I quickly realised Maruti Brezza didn’t have ESP or 6 air bags and the interiors where so poor for a 10 lakh+ car. I loved the Baleno but I could not fathom the idea that a tennis ball hit could make dents in the body work.
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I feel the other way round. To make up for the loss, Maruti will cut cost again and their obvious target will be the safety aspect as they know that 80% of the Indians won't give a damn about safety. Soon you will see special edition of Balenos and Brezzas with stickers outside and removed safety equipment inside.
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