Maruti Suzuki Q1 results preview: 120-160% jump in profit likely; margins to expand

Maruti Suzuki is all set to report more than doubling of June quarter results on a 15-20 per cent jump in net sales. The carmaker, which reported a 6 per cent rise in volumes for the quarter, may log up to 400 basis points expansion in margins on year-on-year basis, thanks to decline in raw material cost and price hikes.

Emkay Global estimates net profit at Rs 2,600 crore in the June quarter compared with Rs 1,012.80 crore in the same quarter last year. It sees sales rising 17.3 per cent YoY to Rs 31,095 crore from Rs 26,499.80 crore in the corresponding quarter last year. It sees margin at 11.3 per cent against 10.5 per cent in the March and 7.2 per cent in the year-ago quarter.

"Revenue is expected to grow YoY due to higher volumes (up 6 per cent) and better realisation. Ebitda  margin is expected to expand QoQ on account of ongoing improvement in the product mix (higher SUV sales), price hike and Yen depreciation," the brokerage said.

Kotak Institutional Equities sees profit at Rs 2,296.30 crore, up 126.7 per cent YoY. It sees sales rising 19.9 per cent YoY to Rs 31,782 crore. "We expect revenues to increase by 20 per cent YoY led by 6 per cent YoY increase in volumes and 12 per cent YoY increase in average selling price (ASPs) due to price increases and a richer product mix.

Motilal Oswal sees profit at Rs 2,261.40 crore, up 123.80 per cent. It sees sales rising 17.3 per cent YoY to Rs 31,074 crore. The largest car maker reported a volume growth of 6 per cent for the quarter. New model launches and higher discounts for lower end models aided volume growth. Ebitda margin may expand 280 bps YoY to 10 per cent, led by benefits of lower raw material costs and operating leverage.

YES Securities in fact sees profit rising 160.3 per cent YoY to Rs 2,636.60 crore. It sees flattish profit on a sequential basis. Volume decline of 3.3 per cent sequentially will be offset by 4 per cent sequential rise in average selling price (ASP) growth at Rs 6.5 lakh per unit, to result in flat revenues of Rs 32,200 crore. Ebitda margins are expected to expand 35 bps QoQ (up 350 bps YoY) at 10.8 per cent led by raw material decline and price hikes.

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