BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Despite a sharp revenue outperformance, Maruti Suzuki India Ltd. posted below expected Ebitda in Q2 as commodity inflation and high logistic cost are keeping the margin trajectory vulnerable. Ebitda margin came at 4.2%.
A combination of price hike and cost controls is being targeted to mitigate the impact of high raw material cost. The company has taken an average price hike of ~1% in July and 1.9% in September 2021.
Management expects softening precious metal prices and operating leverage to aid margin in ensuing quarters.
Maruti Suzuki witnessed significant disruption in production in Q2.
Semi-conductor availability improved slightly in October 2021 and expected to improve further in November 2021 but full recovery will be difficult to anticipate.
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