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ICICI Securities Report
Maruti Suzuki India Ltd.'s Q1 FY23 operational performance missed consensus estimates as Ebitda margin came in at 7.2% (consensus: 8.6%), down 186 basis points QoQ.
The miss was due to negative operating leverage, annual pay hikes/bonus, higher marketing expenses and peak of raw material costs getting accounted.
Led by ~2% price hikes, average selling price was up 3% QoQ through improvement in model variant mix. However, overall model mix got impacted with the utility vehicle segment witnessing Brezza run-out period.
Successful launches of Brezza / Grand Vitara should partly aid Maruti Suzuki bridge gaps in the UV segment where its market share got eroded by ~900 bps to ~19% in the past couple of years.
Company lost production of 51,000 units in Q1 FY23 due to chip shortage. But with improving chip supply, below-par inventory, new launches and steady retail demand, we are building-in Maruti Suzuki's passenger vehicle market share at ~46.5% for FY23E-FY24E.
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