Maruti Suzuki can put pedal to rerating metal on volume, market gains

There could be margin pressures in the near term, given commodity costs

Maruti Suzuki India (MSIL) — India’s largest passenger vehicle (PV) manufacturer — disappointed the Street with weaker-than-expected financial performance in 2022-23 (FY23) January-March quarter (fourth quarter, or Q4).

Even as revenues were up 20 per cent over the year-ago quarter and 10 per cent sequentially to Rs 32,048 crore, they still missed Street estimates.

While volumes grew 10.5 per cent on a sequential basis, the average selling prices were a smidge lower due to a weak product mix. Semiconductor unavailability affected the sales of the top-end variants/premium models, influencing realisations.

Whilst the company clocked in 19 per cent volume growth