Despite Q1 miss, multiple triggers ahead for Maruti

Volume growth and the successful launches of Ciaz, Brezza and Baleno to keep margins elevated

Maruti Suzuki's June quarter (Q1) performance was lower than the Street's expectations across all parameters. While volume growth at 13.2 per cent year-on-year (y-o-y) remained strong, growth in realisations or average selling prices per vehicle was at a mere three per cent.

Sequentially, the numbers were muted, with volume growth of five per cent and fall in realisations by about nine per cent. Net sales stood at Rs 17,132 crore, up 16.7 per cent y-o-y, but down nearly five per cent over the March quarter. This was lower than the consensus estimates of Rs 17,594 crore.

 

The results