India’s largest carmaker Maruti Suzuki is likely to report healthy revenue growth in the quarter ended December, supported by higher volumes and an increase in average selling prices (ASPs). The company will report its third-quarter earnings on January 31.

Operating revenue for the third quarter is expected to rise 15% year-on-year (YoY), according to an average estimate of four brokerages. Meanwhile, profit for the same period is seen rising up to 34% YoY.

Maruti Suzuki has already reported 8% growth in its volumes for the October-December period.

EBITDA margins for the said period are likely to expand YoY due to positive operating leverage and a favourable product mix. However, margins may decline on a sequential basis on account of operating deleverage and higher raw material costs coupled with discounts in the festive season.

Maruti Suzuki posted 80% growth in its net profit at Rs 3,716 crore in the preceding September quarter, while revenues increased 24% to Rs 37,062 crore.

Here’s what the brokerages expect from Maruti’s Q3 Results:

Kotak Equities

We expect revenues to increase by 14% YoY, led by an 8% YoY increase in volumes and a 6% YoY increase in ASPs due to price increases and richer product mix (higher mix of SUV segment) in 3QFY24.

We estimate EBITDA margins to decline by 150 bps QoQ to 11.5%, led by negative operating leverage benefit, higher discounts on account of the festive season, reversal of finished goods inventory and inferior product mix (200 bps decline in SUV segment mix) in 3QFY24.

YES Securities

MSIL’s volume growth of 7.6% YoY, supported by ASP growth will result in 14.9% YoY (-9.9% QoQ) growth in revenues at Rs 33,380 crore. EBITDA margins are expected to expand 280bp YoY (-30bp QoQ) at 12.6% led by positive operating leverage, favourable FX and product mix. Adjusted PAT to grow 35.3% YoY (-14.4% QoQ) at Rs 3180 crore.

Motilal Oswal

Volume growth of 8% YoY was driven by visible traction in UVs (60% YoY growth), while entry-level models declined 48% YoY. EBITDA margin likely to contract 70bp QoQ to 12.2%, due to an uptick in RM costs coupled with operating deleverage. We have slightly tweaked our FY24E/FY25E volumes to account for the weakness in the entry-level segment.


Revenue growth YoY to be supported by better volume/realization. EBITDA margin to expand on better net pricing. Watch out for demand outlook, particularly for rural/entry-level segments.

(You can now subscribe to our ETMarkets WhatsApp channel)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, Budget 2024 News on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link