Maruti Suzuki Q3 Results Review - Strong Beat, Led By Better Mix, Higher ‘Other Income’: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Maruti Suzuki India Ltd. reported a strong beat in Q3 FY23, driven by better mix (8% beat on average selling prices) and higher other income. Revenue/Ebitda/profit after tax grew 25%/82%/1.3 times YoY to ~Rs 290.4 billion /Rs 28.3 billion/Rs 23.5 billion, respectively. Nine months-FY23 revenues/Ebitda/adjusted profit after tax grew 39%/ 2.3 times/ 2.8 times YoY. Volumes grew 8% YoY. ASP grew 15.5% YoY (up 8% QoQ) to Rs 623,400 (our estimate: Rs 575,600) due to better mix, despite higher discounts.Maruti Suzuki's gross margins improved 260 bps YoY (up 40 bps YoY) to 27.3% (versus estimate 27.6%), led by raw material cost and fotex benefits, diluted by higher discounts.Recently launched products to reflect in profit and loss from Q1 FY24; commodity price benefit largely reflected in Q3 FY23; and the impact of adverse Japanese yen is expected to reflect from Q1 FY24. We expect continued improvement in performance and response to new products to act as catalysts for the stock. We upgrade FY23 earnings per share estimates by 14% to reflect the benefit of mix and higher ‘other income’, but reiterate our FY24 estimates as the mix benefit is offset by the forex impact..Click on the attachment to read the full report:.Maruti Suzuki Q3 Results: Profit Beats Analysts Estimate.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Maruti Suzuki Q3 Results Review - Strong Beat, Led By Better Mix, Higher ‘Other Income’: Motilal Oswal

Maruti Suzuki reported a strong beat in Q3, driven by better mix and higher other income.

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