Q1FY24 Preview: Maruti Suzuki India: Revenue seen at Rs. 321,366 million, PAT at Rs. 26,648 million

29 Jul 2023 , 04:16 PM

Result date: 31^st July, 2023

Recommendation: Buy

Target price: Rs. 10,300

Maruti Suzuki India witnessed 6% year-on-year growth in its sales volumes and 3% decline on a sequential basis. A superior product mix in total sales volumes could aid realization growth on a sequential basis. Thus, revenue could grow 21.3% over the year-ago quarter and inch up 0.3% sequentially, believe analysts at IIFL Capital Services. 

The company’s EBITDA margin could grow 294 basis points over the year-ago quarter to 10.2% but contract 30 basis points sequentially. Higher marketing spend is likely to be a key pressure point.

JPY depreciation (down 4% sequentially) could be the key margin tailwind, while higher marketing spends towards launch of new models could be the key margin headwind on a sequential basis, believe analysts at IIFL Capital Services.

The company’s Profit After Tax (PAT) could grow 163.1% over the year-ago quarter and 1.6% sequentially.

Important management insights to watch out for:

• Demand trends across urban and rural markets
• Outlook on pricing, input costs and margins

	June 2023 estimates	YoY change	QoQ change
Volumes	498,030	6.4%	(3.3)%
Revenue (Rs. mn)	321,366	21.3%	0.3%
EBITDA (Rs. mn)	32,622	70.6%	(2.6)%
EBITDA margin	10.2%	294 bps	(30) bps
Profit After Tax (Rs. mn)	26,648	163.1%	1.6%

Source: IIFL Research