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Motilal Oswal Report
Maruti Suzuki India Ltd. reported an in-line operating quarter driven by higher realisation. Favorable product lifecycle is likely to drive volumes, market share and margins, whereas moderating commodity prices and favorable forex are expected to boost margins.
Maruti Suzuki’s revenue/Ebitda/profit after tax grew 49%/133%/ 130% YoY to ~Rs 265 billion/ Rs 19 billion/Rs 10 billion, respectively. Net realisations expanded 13% YoY (up 3.5% QoQ) to Rs 566,300 (our esimate: 550,000) fueled by price hikes and improved mix.
Gross margin contracted 110 bp QoQ (up 20 bps YoY) to 25.4% (versus estimate 25.5%), adversely impacted by higher raw material cost and QoQ increase in discounts.
Higher-than-estimated staff costs (due to increments) led to Ebitda margin miss at 7.2% (versus estimate: 7.5%), a decline of 190 bps QoQ (up 260 bps YoY). Ebitda grew 133% YoY to ~Rs 19.1 billion (versus estimate ~Rs 19.3 billion).
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