Maruti Suzuki Q1 Preview: Volume growth, price hikes, richer product mix to aid earnings
In terms of sales volumes, there is an estimated 6 percent growth year-on-year, reaching 4.98 lakh units.
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By Sonia Shenoy
Homegrown automobile manufacturer Maruti Suzuki is gearing up to announce its financial results for the quarter ended June 2023 (Q1FY24) on July 31.
According to a CNBC-TV18 poll, analysts expect revenue growth of 19 percent, reaching Rs 31,437 crore compared to Rs 26,499 crore reported in the corresponding quarter last year.
Furthermore, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is anticipated to surge by 70 percent, reaching Rs 3,261 crore, compared to Rs 1,912 crore in Q1FY23. This potential increase in EBITDA would lead to an expansion of the margin to 10.3 percent on a year-on-year basis.
The projected profit after tax is expected to double to Rs 2,403 crore from the Rs 1,012 crore reported in Q1FY23.
In terms of sales volumes, there is an estimated 6 percent growth year-on-year, reaching 4.98 lakh units. Healthy volume growth, price increases and a richer product mix are likely to aid the company’s earnings. However, it is anticipated that on a sequential basis, the margin might see a slight decline of 20 basis points due to increased discounts and higher advertising expenditures.
Investors and analysts will keenly observe the management's commentary on the demand outlook, particularly in the affordable segment, which will provide valuable insights into the company's future prospects.
It is worth noting that Maruti's stock has shown a 9.5 percent increase over the last six months, closing the recent trading session at Rs 9,660 per share, with a decline of 0.96 percent on Friday.
