Maruti Suzuki Q1 Results: Net profit likely to more than double to ₹2,490 crore; revenue growth seen at 18.6% YoY

livemint.com:

Maruti Suzuki India Ltd, the largest passenger vehicle manufacturer in the country, is set to announce its Q1 results today. The auto major is likely to see its net profit more than double in the first quarter of FY24 as compared to the same period last year. During Q1FY24, the automobile industry overall witnessed higher realization led by price hikes and improved volume driven by a strong order book, new product launches, and increased demand for personal mobility.

Major commodity prices declined during the quarter sequentially. As the margins get impacted with a lag, analysts believe companies can see their margins benefiting from this decline in commodity basket. Maruti Suzuki’s net profit in April-June 2023 quarter is expected to jump by 145% to ₹2,490 crore as against ₹1,012.8 in the same quarter last year.

The company’s revenue is likely to grow by 18.6% to ₹31,430 crore from ₹26,499, YoY, as per average analysts estimates. In Q1FY24, Maruti Suzuki’s volume growth was around 6% YoY aided by traction for new model launches and higher discounts for lower end models. Earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter ended June 2023 is expected to rise to ₹3,106 crore, while EBITDA margin likely to expand by 280 basis points (bps) YoY to 10%, led by benefits of lower raw material costs, ongoing improvement in the product mix (higher SUV sales), price hike and depreciation in Japanese Yen.