 "Maruti Suzuki Q4 preview: Profit may soar up to 56% YoY on robust sales mix")
Maruti Suzuki Q4FY24 results preview: Maruti Suzuki, India's biggest domestic car manufacturer, could ride on better pricing and healthy sales volume to ride over 40 per cent year-on-year growth in net profit in the March quarter of financial year 2023-24 (Q4FY24).
According to various brokerage estimates, MSIL's net profit in Q4FY24 may rise anywhere between 44 per cent and 56 per cent Y-o-Y, on the back of around 13 per cent Y-o-Y rise in sales volume.
PAT, analysts said, may thus see a quarter-on-quarter (Q-o-Q) rise of up to 30 per cent from Rs 3,130 crore reported in the December quarter (Q3FY24). In Q4FY23, net profit of Maruti Suzuki India was Rs 2,623.6 crore.
Maruti Suzuki India is scheduled to report its March quarter (Q4FY24) results on Friday, April 26, 2024.
Here's what key brokerages expect from Maruti Suzuki Q4 results:
Prabhudas Lilladher
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The brokerage expects MSIL's revenue to grow by 21.2 per cent Y-o-Y and 16 per cent Q-o-Q to Rs 38,838.2 crore in Q4FY24, driven by volume expansion of 13.4 per cent Y-o-Y and 16.5 per cent Q-o-Q.
Revenue was Rs 32,048 crore in the same quarter last year, and Rs 33,308.7 crore in Q3FY24.
The mix of utility vehicles (UVs), the brokerage noted, increased from 26 per cent in Q4FY23 to 36.7 per cent in Q4FY24, which should aid in Ebitda margin expansion of 223bps Y-o-Y/95bps Q-o-Q to 12.7 per cent.
Consequently, net profit could grow by 48 per cent Y-o-Y and 24.1 per cent Q-o-Q to Rs 3,884 crore in the said quarter.
ICICI Securities
This domestic brokerage forecasts a 56 per cent Y-o-Y jump in net profit, at Rs 4,084.1 crore, for the March quarter. This would be approximately 30 per cent higher over the December quarter.
Operationally, Ebitda is projected to jump 53 per cent Y-o-Y and 31 per cent Q-o-Q to Rs 5,119.5 crore from Rs 3,350.3 crore reported in Q4FY23 and Rs 3,907.9 crore in Q3FY24.
Revenue, too, is seen rising 22 per cent Y-o-Y and 17 per cent Q-o-Q in Q4FY24.
Nuvama Institutional Equities
In its results preview report, NIE said revenue growth of 21 per cent Y-o-Y (Rs 38,793.7 crore) could be supported by robust volume growth and increase in realisations. Ebitda margin, too, may expand on better net pricing and scale.
Key thing to watch out for, the brokerage said, is demand outlook, especially for rural/ entry level segments.
Antique Stock Broking
In-line with other brokerages, Antique forecasts a 44.2 per cent Y-o-Y and 21 per cent Q-o-Q rise in PAT at Rs 3,783 crore for the March quarter.
Pre-tax profit, it said, may soar 53 per cent Y-o-Y and 23 per cent Q-o-Q to Rs 4,977.7 crore, while Ebitda could swell 43.8 per cent on year and 23.3 per cent on quarter to Rs 4,817.7 crore.
Kotak Institutional Equities
Kotak Inst. Equities bakes in revenue growth of 20 per cent Y-o-Y and 15.2 per cent Q-o-Q to Rs 38,378.4 crore led by 13 per cent Y-o-Y increase in volumes and 6 per cent Y-o-Y increase in average selling price (ASPs) due to price increases and a richer product mix (higher mix of SUV segment) in Q4FY24.
Further, it expects Ebitda margin to improve by 170 bps Q-o-Q to 13.5 per cent led by operating leverage benefit, commodity tailwinds, favorable forex, and lower discounts.
Ebitda margins were 10.5 per cent in Q4FY23 and 11.7 per cent in Q3FY24.
Net profit, meanwhile, is pegged at Rs 4,074.9 crore, a potential growth of 55.3 per cent Y-o-Y and 30.2 per cent Q-o-Q.
That said, the brokerage also sees a higher tax outgo of Rs 1,217.2 crore in Q4FY24, up 93 per cent Y-o-Y and 32 per cent Q-o-Q.