Maruti Suzuki Q3 Review - New Launches To Stabilise Market Share; Limited Upside Potential: Systematix
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Systematix Research Report
Maruti Suzuki India Ltd.'s Q3 FY22 Ebitda margin of 6.7% (up 250 basis points QoQ) was below our estimate due to a weaker-than-expected gross margin, partially offset by stricter cost controls.
The management highlighted that demand momentum remains strong with order book exceeding 260,000 units (45% is for compressed natural gas) amid supply chain constraints that are resolving gradually; it is currently operating at 90% plus utilisation levels.
Commodity prices (both steel and precious metals) are showing signs of cooling off, which should ease input cost pressure.
Maruti Suzuki has planned several launches over the next 12 months, including three new products in the fast-growing SUV segment, which should help stabilise its market share (lost ~500 bps in year-to-date FY22).
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