Maruti Suzuki Q3 Results Review - Margins Expansion Levers Shaping Up Well: Yes Securities

Yes Securities Report

Maruti Suzuki India Ltd.’s Q3 FY23 operating results were healthy as Ebitda came in higher by ~6% to our estimates at Rs 28.3 billion (estimate: Rs 26.6 billion) with ~50 bps QoQ expansion in margins at 9.8% (estimate: 9.6%). This was led by raw material inflation cooling off, positive operating leverage, favorable product mix (as proportion of higher priced variants were higher).

However, higher royalty spends at 3.9% (versus 3.7% in H1) and advertising and promotion spends, partially restricted margins expansion. Going forward with raw material stability, we expect margins to expand QoQ led by cost controls and operating leverage.

Strong response to recently launched products has led to overall bookings at ~3.6 lakh (versus ~4.1 lakh Q2 FY23 and ~3.5 lakh units in Q1 FY23) of which ~190,000 bookings is for recently launched products. With this and launch of Jimny (early FY24), we believe Maruti Suzuki should be able to partially recoup lost market share.

Click on the attachment to read the full report:

More Research Reports On Maruti Suzuki's Q3 FY23 Results Reviews

• Strong Show, Improving Volume, Margin Outlook: Dolat Capital

• Strong Beat, Led By Better Mix, Higher ‘Other Income’: Motilal Oswal

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.