Maruti Suzuki India Limited (MSIL) reported dismal set of numbers, lower than estimates on PAT front. Standalone revenue declined by 12.2% yoy to Rs19,719.8cr, in-line with estimate. Volume for the quarter was down by 17.9% yoy. Due to negative operating leverage, adverse commodity prices and higher sales promotion expenses, EBITDA was down 38.9% yoy and stood at Rs2,047.8cr. EBITDA margin contracted by 454bps yoy to 10.4% (estimate 11%). Depreciation and interest costs were up by 27.6% and 164.3% yoy. Thus, PAT declined by 27.3% yoy to Rs1,435.5cr, ~12% lower than estimate.
The company sold 4,02,594 vehicles during the quarter, lower 17.9% yoy. Sales in the domestic market stood at 3,74,481 units, down 19.3% yoy and exports sales volume stood at 28,113 units, growth of 5.5% yoy.
This weak operating performance during the quarter was due to (a) lower capacity utilization, (b) adverse commodity prices, and (b) higher sales promotion expenses.
Other income for the quarter stood at Rs836.4cr against Rs271.8cr in Q1FY19.
Maruti Suzuki India Ltd is currently trading at Rs. 5,792.15, up by 31.8 points or 0.55% from its previous closing of Rs. 5,760.35 on the BSE.
The scrip opened at Rs. 5,737 and has touched a high and low of Rs. 5,955.25 and Rs. 5,685.15 respectively. So far 18,49,927 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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