Q4FY23 Preview: Maruti Suzuki India: Revenue seen at Rs 320,535 million, PAT at Rs 26,893 million

24 Apr 2023 , 06:13 PM

Result date: 26^th April, 2023

Recommendation: Buy

Target price: Rs 10,350

 

Maruti Suzuki India (Maruti) is likely to post strong, double digit growth in Profit After Tax (PAT) for the March 2023 quarter. The company registered sales volume growth of 5% over the year-ago quarter and 11% sequentially. Higher sales of SUVs coupled with increase in average sales price could drive revenue growth during the quarter.

Maruti’s EBITDA margin could jump 175 basis points over the year ago quarter amid better operating leverage and seasonal fall in discounts. Appreciation in JPY is the key margin headwind.

PAT could surge 46% over the year-ago quarter.

Important management insights to watch out for:

• Outlook on sales volumes across markets and product segments
• Drivers of margins
• Outlook on input costs and pricing action

	March 2023 estimates	YoY change	QoQ change
Volumes	514,927	5.3%	10.5%
Revenue (Rs Million)	320,535	19.9%	10.4%
EBITDA (Rs Million)	34,693	43.0%	22.5%
EBITDA Margin	10.8%	175 bps	107 bps
Profit After Tax	26,893	46.2%	14.4%

Source: IIFL Research