Maruti Suzuki (Q2 FY14)

India Infoline News Service | Mumbai |

OPM at 12.6% was better than our estimates of 11% and consensus estimates of 10% because of favorable currency, better product mix and lower raw material costs

CMP Rs1,513, Target Rs1,684, Upside 11.3%
 
  • Net sales jump 26% yoy on the back of low base created last year owing to strike at Manesar plant. Also Q2 FY14 numbers are inclusive of Suzuki Powertrain numbers which makes yoy comparison redundant

  • Sequentially volumes rose 3.4% which was better than industry performance driven by 61% growth in exports

  • OPM at 12.6% was better than our estimates of 11% and consensus estimates of 10% because of favorable currency, better product mix and lower raw material costs

  • PAT grows by 6.1% qoq led by strong improvement in operational performance

  • Factoring in improved operational performance, we raise our 9-month target price to Rs1,684 and maintain BUY. 

Result table
BSE 9,164.00 46.05 (0.51%)
NSE 9,165.90 53.15 (0.58%)

***Note: This is a NSE Chart

 

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(Rs m)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Volumes
275,586
230,376
19.6
266,434
3.4
Net Realisation (Rs/unit)
370,550
350,302
5.8
375,144
(1.2)
Net sales
104,681
83,054
26.0
102,373
2.3
Material costs
(66,663)
(61,174)
9.0
(68,016)
(2.0)
Purchases
(5,981)
(4,936)
21.2
(5,641)
6.0
Personnel costs
(3,723)
(2,352)
58.3
(2,951)
26.2
Other overheads
(15,099)
(9,507)
58.8
(14,105)
7.1
Operating profit
13,214
5,085
159.8
11,661
13.3
OPM (%)
12.6
6.1
650bps
11.4
123bps
Depreciation
(4,992)
(3,470)
43.8
(4,802)
4.0
Interest
(434)
(380)
14.2
(442)
(1.9)
Other income
1,010
1,563
(35.4)
2,043
(50.6)
PBT
8,799
2,798
214.4
8,460
4.0
Tax
(2,097)
(524)
300.3
(2,145)
(2.2)
Effective tax rate (%)
23.8
18.7
25.3
Reported PAT
6,702
2,274
194.7
6,315
6.1