Maruti Suzuki likely to post healthy earnings growth for June quarter

Maruti Suzuki, India's largest passenger car manufacturer is likely to post healthy earnings growth for June quarter as consumers preference shifted towards to buy more petrol variants of the passenger cars.

This has helped company to post robust volume growth of 12%YoY in June quarter. Although growth in key financial parameters like revenue and profit would be moderate as average discount level continues to remain elevated.

The net profit of the automobile maker is expected to increase by 9% to Rs 690 crore for June quarter compared with Rs 631 crore for corresponding quarter a year ago. On the revenue front, growth is expected to grow in June quarter by 7% YoY to Rs 10931 crore over the same period a year ago.

The average realization per unit in June quarter is expected to drop as proportion of sales in compact segment dropped compared with total sales. This will resulted in revenue growth restricted to only 7% YoY in June quarter although overall volume grow by 12% for the same duration.

source:-http://auto.economictimes.indiatimes.com