Maruti Suzuki Q3 Results Review - Mixed Set; Revenue, Net Profit Inline; Ebitda Miss: Yes Securities

Yes Securities Report

Maruti Suzuki India Ltd.’s Q3 FY24 overall results were a mixed set as revenue/adjusted profit after tax were in-line while Ebitda came in lower at Rs 39 billion (+38% YoY/ -18% QoQ, estimate: Rs 42 billion), as gross margins came in lower at 29.1% (estimate: 29.8%, +180 basis points YoY/ -30 bp QoQ).

Going ahead, margins expansion to be influenced by-

1. forex movement (expected to be favorable),

2. decline in precious metal prices to be partially offset by stable Steel prices and

3. operating leverage given healthy inventory and orderbook.

Demand outlook for the PV industry for FY25E would likely be low-mid single digit growth, where Maruti Suzuki would likely outperform led by strong CNG portfolio (~30.8% of volumes).

With improved supply, overall orderbook declined further to ~215,000 (versus ~250,000 units in Q2, ~355,000 in Q1 and ~412,000 in Q4 FY23)

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