Q2FY24 Preview: Maruti Suzuki India: Revenue seen at Rs. 377,103 million, PAT at Rs. 32,519 million

25 Oct 2023 , 05:41 PM

Result date: October 27, 2023

Recommendation: Add

Target price: Rs. 10,575

Sales volumes of the company grew 7% over the year-ago quarter and 11% sequentially. This, coupled with superior mix of products and price hikes could lead to 26% growth in revenue as compared to the year-ago quarter.

Analysts at IIFL Capital Services expect EBITDA margin to expand by 200 basis points each both over the year-ago quarter as well as sequentially. Depreciation in JPT, favorable leverage, falling prices of precious metals and lower discounts are key margin tailwinds for the company.

Profit After Tax or PAT could grow 58% over the year-ago quarter.

Important management insights to watch out for:

• Demand outlook across markets
• Margin drivers and future pricing action lined up

	September 2023 estimates	YoY change	QoQ change
Volumes	552,055	6.7%	10.8%
Revenue (Rs. mn)	377,103	26.0%	16.7%
EBITDA (Rs. mn)	42,898	54.9%	43.8%
EBITDA margin (%)	11.4%	212 bps	215 bps
Profit After Tax (Rs. mn)	32,519	57.7%	30.9%

Source: IIFL Research