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%
 
  • 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

  • Factoring in weak volumes in FY14, we reduce our 9-month target price to Rs1,600 and maintain BUY. 

Result table
(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
BSE 9,117.95 7.35 (0.08%)
NSE 9,112.75 [7.90] ([0.09]%)

***Note: This is a NSE Chart

 

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