29 Jul 2023 , 04:16 PM
Result date: 31st 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:
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
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