Q3FY23 Preview: Maruti Suzuki India: Revenue seen at Rs282,748 million, PAT at Rs 19,281 million

23 Jan 2023 , 11:31 AM

Result date: 24^th January, 2023

Recommendation: Buy

Target price: Rs10,300

Maruti Suzuki India (Maruti) reported 8% growth in its volumes over the year-ago quarter. Volumes, however, declined 10% sequentially owing to the seasonality factor.

Analysts at IIFL Capital Services expect the company’s Revenue to grow 21.6% over the year ago quarter on the back of price hikes. 

They expect Maruti’s EBITDA margin to increase 262 basis points over the year-ago quarter and 7 basis points sequentially. Key sequential margin tailwinds include lower commodity prices, JPY depreciation (3% QoQ in Q2). Key sequential margin headwinds include negative operating leverage and higher discounts (partly seasonal). 

Maruti’s Profit After Tax or PAT could grow 90.7% over the year-ago quarter and decline 6.5% sequentially.

Important management insights to watch out for:

• Demand trends across key markets and segments
• Outlook on pricing action, margins

	December 2022 estimates	YoY change	QoQ change
Volumes	465,911	8.2%	(10.0)%
Revenue (Rs mn)	282,748	21.6%	(5.5)%
EBITDA (Rs mn)	26,359	69.1%	(4.8)%
EBITDA margin	9.3%	262 bps	7 bps
Profit After Tax (Rs mn)	19,281	90.7%	(6.5)%

Source: IIFL Research