Maruti misses Q4 forecast

MarutiThe domestic market leader that sells one in two cars in the Indian market has missed the forecast for the fourth quarter after being hit by lower margins and higher input costs.

In fact, the company has filed a net profit of 6.56 billion rupees ($148.1 million) for the fourth quarter ended March which is decent enough as compared to the 2.43 billion rupees earned a year earlier.

However, analysts were expecting even more surge as far as the net profits of the company are concerned. The company has even filed a fall in the operating margins of the company by around 200 basis points.

Moreover, the company old 287,422 cars in the March quarter, up 22 per cent from a year earlier banking on the rural boom but the company believes that with the competition in the A2 segment rising by the day, it is believed that the company will get its future growth from the urban areas of the country.

Be it Hyundai, Ford, GM or Volkswagen all the automakers have set their sights on the compact car segment, which is the bread and butter for Maruti Suzuki in the Indian market.