Maruti Suzuki Q2 Preview: Revenue may jump up to Rs 37,811 crore YoY

In September 2024, Maruti Suzuki reported total sales of 184,727 units, comprising 148,061 units in domestic sales, 8,938 units sold to other OEMs, and 27,728 units in exports

Maruti Suzuki Q2 preview: As Maruti Suzuki gears up for its Q2FY25 results today, October 29, 2024, analysts are projecting a mixed outlook amid challenges such as declining volumes and heightened competition. 

 

Analysts noted that operating profit margins, also known as Ebitda margins, will likely contract across the board due to increased discounts and competitive pressures, with net profit estimates reflecting a similar trend. 

 

Key areas of focus will include demand dynamics for rural and entry-level cars as the company navigates this challenging landscape.

 

Apart from that, in September 2024, Maruti Suzuki reported total sales of 184,727 units, comprising 148,061 units in domestic sales, 8,938 units sold to other original equipment manufacturers (OEMs), and 27,728 units in exports. 

 

 

Meanwhile, on the bourses, Maruti Suzuki’s shares closed 0.12 per cent lower at Rs 11,482.20 on Monday, October 28, 2024 ahead of its earnings, although the stock has risen over 11 per cent year-to-date (Y-T-D).

 

Given this, here’s what top brokerages expect from Maruti Suzuki’s Q2FY25 results:

 

Nuvama  

 

Analysts at Nuvama project a year-on-year revenue decline due to falling volumes, with Ebitda margins expected to contract as a result of higher discounts and lower scale. They highlighted the demand outlook for rural and entry-level cars as key factors to watch in Q2. Thus, analysts' estimate revenue of Rs 36,864.7 crore (down 1 per cent Y-o-Y), Ebitda of Rs 4,496.2 crore (down 6 per cent Y-o-Y), and adjusted PAT of Rs 3,633.2 crore (down 2 per cent Y-o-Y).

 

InCred Equities 

 

InCred Equities analysts anticipate that Maruti Suzuki may gain market share, noting that currency fluctuations in JPY/INR and GBP-USD will be another major factor for the company. 

 

They expect revenue to come in at Rs 37,811.1 crore (up 2 per cent Y-o-Y), with Ebitda at Rs 4,882 crore (up 2 per cent Y-o-Y) and adjusted PAT at Rs 3,935.8 crore (up 5.9 per cent Y-o-Y).

 

Deven Choksey Research   

 

Deven Choksey’s analysts foresee Q2FY25 revenue remaining flat year-on-year, primarily due to a 1.9 per cent decline in volumes attributed to high inventory, low demand, and intense competition. However, they expect a sequential revenue growth of 4.5 per cent due to positive seasonal effects. They project average realisation to rise by 2.0 per cent Y-o-Y due to increased raw material costs and a richer product mix. Therefore, analysts estimate revenue of Rs 37,388.8 crore, Ebitda of Rs 5,078.5 crore, and net profit of Rs 3,844.4 crore, with Ebitda margins at 3.6 per cent.

 

Motilal Oswal

 

Those at Motilal Oswal report a 2 per cent year-on-year decline in volumes, driven by weakness in both entry-level cars and UVs. They anticipate a contraction of 40 basis points in Ebitda margins to 12.3 per cent due to higher discounts. Their estimates suggest revenue of Rs 37,240.2 crore (up 0.5 per cent Y-o-Y), Ebitda of Rs 4,591.1 crore (down 4 per cent Y-o-Y), and net profit of Rs 3,697.6 crore (down 0.5 per cent).