Maruti Suzuki Q3 Results Review - Strong Show, Improving Volume, Margin Outlook: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Despite all odds (semiconductor shortage issue, higher discounts and weaker exports) Maruti Suzuki India Ltd.’s printed a standout performance on margin front in Q3 led by increase in net average selling price (up 8.3% QoQ due to higher proportion of SUVs and bigger cars) and softening commodity prices. Ebitda grew 2% QoQ to Rs 28.33 billion with resilient margin at 9.8 %(up 50 bps QoQ).We expect passenger vehicles demand to continue to be strong for the near to medium term led by strong waiting periods for cars and low inventory. Maruti Suzuki’s current order backlog stands at ~363,000 units and holding only five days of network stock at the end of Q3. As semiconductor availability is expected to improve, we expect strong ramp up in volume in Q4, hence benefit of operating leverage would kick in margin.Although, Q3 export number was weak due to the issue of dollar availability in emerging markets, expect gradual recovery of export volume from Q4. Grand Vitara contribution would be significant in coming quarter..Click on the attachment to read the full report:.Maruti Suzuki Q3 Results: Profit Beats Analysts Estimate.DISCLAIMERThis 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.

Maruti Suzuki Q3 Results Review - Strong Show, Improving Volume, Margin Outlook: Dolat Capital

Despite all odds Maruti Suzuki printed a standout performance on margin front in Q3.

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