Maruti Suzuki Q1 Results Review - Margin Tailwinds Despite Weak Volume Outlook: Yes Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Maruti Suzuki India Ltd.’s Q1 FY25 results were healthy as it reported ~17%/~11.6% Adjusted profit after tax beat to our/street estimates led by healthy operating performance. Better than expected Ebitda at Rs 45 billion (estimate: Rs 38.3 billion) was led by;~60 bp reversal of one-off in raw material reported in Q4 FY24,raw material and forex benefit offset by increased discounts, favorable operating income and other operating cost benefit of ~70bp/ ~30 bp. However, this was offset by ~80 bp negative operating leverage and ~30 bp impact due to increased advertising and promotion spends. Despite ~10.6% QoQ volume decline, Ebitda/vehicle came in highest at ~Rs 86,300/unit (+44% YoY/ +7.5% QoQ), is considered healthy. Going ahead, increase in share of CNG, peak average discounts, stable raw material and favorable mix are the positive margins triggers which is expected to playout as volumes are likely to be muted led by industry growth dynamics. Maruti Suzuki would likely outperform the industry led by strong CNG portfolio with ~33% contribution versus 27% in Q4 FY24. .Click on the attachment to read the full report:.Maruti Suzuki Q1 Results Review - Increase In CNG, UV Penetration Driving Growth: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Maruti Suzuki Q1 Results Review - Margin Tailwinds Despite Weak Volume Outlook: Yes Securities

Going ahead, increase in share of CNG, peak average discounts, stable raw material and favorable mix are the positive margins triggers for the company, says the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Maruti Suzuki Q1 Results Review - Margin Tailwinds Despite Weak Volume Outlook: Yes Securities

Going ahead, increase in share of CNG, peak average discounts, stable raw material and favorable mix are the positive margins triggers for the company, says the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP