Maruti Suzuki announces dividend of Rs 60 per share & other Q4 takeaways

India’s largest carmaker Maruti Suzuki reported largely in-line numbers for the March quarter, during which it saw lower sales and higher promotional expenses.

The motorcar company also announced a dividend for the last fiscal year.

Here are key takeaways from earnings report:

Unit sales down 16%
In the domestic market, the company sold 3,60,428 vehicles, lower by 16 per cent over the same period previous year. Exports were at 24,597 vehicles, lower by 16.9 per cent on a year-on-year basis.

Net hit by lower sales
Lower sales volume and higher sales promotion expenses led to the drop in bottom and topline. They were partially offset by lower operating expenses, cost reduction efforts and reduction in corporate tax rate.

In Q4, the company registered net sales of Rs 17,185 crore, down 17.1 per cent YoY. Net profit in the Q4 stood at Rs 1,291 crore, lower by 28.1 per cent.

Dividend @Rs60/share
Maruti Suzuki, which is 56.21 per cent owned by Suzuki Motor Corporation of Japan, announced a dividend of Rs 60 per share for FY 2019-20.

Lower utilisation hit margins
Margin for the company, that contracted 180 bps to 8.5 per cent, was affected by lower capacity utilisation and higher sales promotion expense on the negative side and lower operating expenses, cost reduction efforts and lower corporate tax rate on positive side.