The automaker is seen reporting a 143% YoY rise in net profit to Rs 2,460, according to the average of estimates given by 12 brokerages. Net sales is seen growing nearly 20% YoY to Rs 31,730 crore. Sequentially, the bottomline is likely to decline 6.2% and revenue may drop by about 1%.
The country’s largest automobile manufacturer is scheduled to release its quarterly results on Monday.
Here’s a summary of analysts’ expectations on earnings from the automaker:
Prabhudas Lilladher
Maruti’s revenue is likely to remain flat QoQ due to a 3.3% decline in volumes, offset by higher realisations (+3.5% QoQ). Expect EBITDA margin to remain flat due to increase in input cost and lower operating leverage.
PhillipCapital
Revenue to grow 21% YoY led by an increase in realisations by 14% on the back of improved mix towards SUV and price hikes, while revenue to remain flattish on a QoQ basis on the back of a volume decline of 3%, though offset by higher realisations of 3% due to improved product mix and price hike.EBITDA margin is likely to improve 318 bps YoY on improved product mix and cooling commodity costs, while we expect it to remain flattish QoQ despite improved mix.
Motilal Oswal Securities
Traction for new model launches and higher discounts for lower-end models aided volume growth. As a result, volume grew 6% YoY. However, initial signs of demand moderation might act as the near-term headwinds for the coming quarters.
EBITDA margin is likely to expand 280 bps YoY to 10%, led by benefits of lower raw material costs and operating leverage. Sequential decline in margins is largely due to lag impact of JPY/INR movements on vendor imports and operating deleverage.
Kotak Institutional Equities
Expect revenue to increase by 12% QoQ led by a 11% increase in volumes and 1% increase in ASPs due to price increases and richer product mix.
Estimate EBITDA margin to increase by 100 bps QoQ, led by operating leverage benefits and favourable product mix partly, offset by higher advertisement spends on account of newer launches.
Axis Securities
Expect revenue to decline by 2% QoQ due to lower overall unit sales, slightly lower export volume and higher discounts in lower category cars, which would be partially offset by a higher SUV sales mix and price hike of 1% taken in April.
The YoY growth is likely to exceed sales volume growth due to a higher share of the SUV segment in the product mix. EBITDA to outpace the topline growth YoY, led by a richer product mix, price hikes taken during the period, and softening raw material costs.
On a QoQ basis, expect a slight decline in EBITDA due to negative operating leverage on account of the week-long maintenance shutdown in June.
EBITDA margins are likely to improve by 268 bps YoY, led by a richer product mix, price hike, and operating leverage. Sequentially, margins are expected to decline by 56 bps on account of lower sales volume.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
