Maruti Suzuki (Q1 FY14)
India Infoline News Service | Mumbai |
Consolidated net sales in the quarter declined by 5% yoy on account of sharp fall in total volumes sold.
CMP Rs1,412, Target Rs1,600, Upside 13.3%
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Consolidated net sales decline 5% yoy as a 10% yoy decline in volumes gets partly offset from 1) 4% yoy surge in realizations 2) SPIL revenues amalgamated in Q1 FY14 revenues (~1% growth contribution)
-
Realizations were higher owing to 1) Price hikes implemented through the year 2) higher export realizations owing to rupee depreciation
-
Standalone OPM at 11% was in-line with our expectations. OPM was up 370bps yoy mainly on account of the currency benefits (steep depreciation of Yen against the US Dollar). Consolidated margin was at 11.4%
-
Standalone PAT grows by ~42% yoy led by strong operational improvement
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Factoring in weak volumes in FY14, we reduce our 9-month target price to Rs1,600 and maintain BUY.
| (Rs m) |
Q1 FY14* |
Q1 FY13^ |
% yoy |
Q4 FY13# |
% qoq |
| Volumes |
266,434 |
295,896 |
(10.0) |
343,709 |
(22.5) |
| Net sales |
102,373 |
107,782 |
(5.0) |
133,040 |
(23.1) |
| Material costs |
(68,016) |
(79,298) |
(14.2) |
(82,892) |
(17.9) |
| Purchases |
(5,641) |
(4,605) |
22.5 |
(4,404) |
28.1 |
| Personnel costs |
(2,951) |
(2,383) |
23.9 |
(3,875) |
(23.8) |
| Other overheads |
(14,105) |
(13,633) |
3.5 |
(26,383) |
(46.5) |
| Operating profit |
11,661 |
7,863 |
48.3 |
15,487 |
(24.7) |
| OPM (%) |
11.4 |
7.3 |
410bps |
11.6 |
(25) bps |
| Depreciation |
(4,802) |
(3,399) |
41.3 |
(3,650) |
31.6 |
| Interest |
(442) |
(332) |
33.4 |
(726) |
(39.1) |
| Other income |
2,043 |
1,123 |
81.9 |
3,990 |
(48.8) |
| PBT |
8,460 |
5,255 |
61.0 |
15,101 |
(44.0) |
| Tax |
(2,145) |
(1,018) |
110.7 |
(2,705) |
(20.7) |
| Effective tax rate (%) |
25.3 |
19.4 |
598bps |
17.9 |
744bps |
| Adjusted PAT |
6,315 |
4,238 |
49.0 |
12,396 |
(49.1) |
| Adj. PAT margin (%) |
6.2 |
3.9 |
224bps |
9.3
***Note: This is a
NSE Chart
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