Q3 preview: Automakers likely to post subdued sales, improved margins

As for the bottom-line, Sharekhan pegs net profit for the major automakers to drop by around 8 per cent while Prabhudas Lilladher expects a much larger 26 per cent dip

As Maruti Suzuki kicks-off the third-quarter earnings season for automakers on Tuesday, most analysts expect the companies to report a subdued performance for the period under review amid muted demand leading to lower volumes and higher discounts. Based on the monthly sales figures, wholesale volume de-growth trend continued for the domestic automobile space largely due to weak economic growth, rising cost of ownership coupled with inventory correction by original equipment manufacturers (OEMs). Overall, volume declined around 13 per cent year-on-year during the quarter, amidst sharp retail uptick in the festive period.

Consequently, brokerage houses estimate that automakers may report, on average,