Q2FY23 Preview: Maruti Suzuki India: Revenue seen at Rs288,866 million, PAT at Rs21,285 million

27 Oct 2022 , 06:57 AM

Result date: 28^th October, 2022
Recommendation: Buy
Target price: Rs10,600

Maruti Suzuki India (Maruti) is likely to post strong growth in margin as well as Profit After Tax (PAT) for the September 2022 quarter. Healthy growth in volumes both sequentially as well as over the year-ago quarter could drive revenue growth of 40.6% on a year-on-year basis.

EBITDA is likely to spurt strongly both sequentially as well as over the year-ago quarter. Fall in commodity prices, JPY depreciation (8% sequentially in Q1 and 3% sequentially in Q2) and operating leverage are key drivers of EBITDA margin. Price hikes would also aid overall performance of the company.

Analysts at IIFL Capital Services expect Maruti’s PAT to multiply 4.47 times over the year-ago quarter.

Important management insights to watch out for:

• Success of Maruti’s recent and upcoming product launches
• Pricing action, margin levers and outlook

	September 2022 estimates	QoQ change	YoY change
Volumes	517,395	10.6%	36.3%
Revenue (Rs. mn)	288,866	9.0%	40.6%
EBITDA (Rs. mn)	27,547	44.1%	222.2%
EBITDA margin	9.5%	232 bps	537 bps
Profit After Tax (Rs. mn)	21,285	110.2%	347.8%

Source: IIFL Research