Maruti Suzuki Q3 Results Review - Higher Average Selling Price Drives Outperformance: Systematix
Maruti Suzuki India’s Q3 FY23 performance was ahead of our estimate and consensus on higher average selling price.
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Systematix Research Report
Maruti Suzuki India Ltd.’s Q3 FY23 performance was ahead of our estimate and consensus on higher average selling price. Management highlighted that its newly launched SUVs (Grand Vitara, Fronx and Jimny) have received a good response, and it is focusing on ramping up production amid supply-chain constraints.
Maruti Suzuki expects commodity prices and currency to remain stable in Q4 FY23. The demand momentum remains healthy, albeit only in the utility vehicle segment. SUVs continued to outperform overall growth in passenger vehicles (now forming 51% of total PV industry volumes) while demand for cars continues to be subdued.
With strong hybrids also seeing reasonable success, we see heightened competitive intensity keeping Ebitda margin under pressure. We have increased FY23E/24E revenue estimate by 10%/15% on new model launches, easing supply constraints amid premiumisation trend and consequent ASP improvement.
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