Maruti Suzuki (Q1 FY14)

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.