Maruti Suzuki is likely to report over 90 per cent year-on-year (YoY) rise in net profit for the December quarter on a 17-20 per cent rise in sales. Margin is likely to expand on both YoY and sequential basis. Maruti, analysts said, may do well, given strong distribution reach, easing of supply chain constraints and sustained demand in New Brezza and Grand Vitara. Volumes for the automaker were up 8.2 per cent for the quarter at 4,65,911 units.
Kotak Institutional Equities sees Maruti Suzuki to report a 92.6 per cent YoY rise in sales at Rs 1,948 crore. compared with Rs 1,011.30 crore in the corresponding quarter last year. Net sales rising 17.6 per cent YoY to Rs 27,310 crore from Rs 23,246 crore in the year-ago quarter. Margin is seen at 9.9 per cent against 9.3 per cent in September and 6.7 per cent in the year-ago quarter.
"We estimate Ebitda margin to increase 60 bps QoQ led by RM tailwinds and benefit of yen depreciation against rupee (lagged impact) resulting in lower cost of RM imports (7 per cent of the direct and indirect RM imports are yen-denominated) partly offset by negative operating leverage in Q3FY23," Kotak said.
Emkay Global expects Maruti Suzuki to report 92.5 per cent YoY jump in standalone net profit at Rs 1,946 crore. Net sales for the quarter rose 22.1 per cent YoY to Rs 28,385 crore. Ebitda margin is seen at 9.2 per cent.
"Revenue may grow YoY due to higher volumes (up 8 per cent) and realisation (up 13 per cent). Realisation may improve due to better model mix and price hikes. Gross margin to expand due to price hikes, commodity deflation and yen depreciation. Ebitda margin to expand owing to benign scale and better gross margin," the brokerage said.
Prabhudas Lilladher sees Maruti's profit at Rs 1,903 crore, up 88.2 per cent YoY. It sees sales jumping 17.7 per cent YoY to Rs 27,356 crore. "Maruti's revenue to decline 9 per cent QoQ led by 10 per cent drop in volumes. We expect Ebitda margin expansion of 40 bps QoQ on the back of RM cost easing out and price hikes," it said.
Axis Securities sees profit growth at 87.5 per cent and revenue growth at 20.4 per cent.
Meanwhile, Maruti Suzuki is reportedly investigating allegations of wrongdoing by some company executives from the purchase department. Investors would want to have some clarity on the matter.
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