Maruti Suzuki India Q1 results preview: Auto major likely to post robust numbers; PAT estimated to rise 148.8%

Maruti Suzuki India Q1 Results preview: Margins are expected to improve due to lower manufacturing costs and better operating leverage.

File image. Source: Reuters

Maruti Suzuki India Q1 Results preview: Maruti Suzuki India (MSIL), India's leading car manufacturer, is expected to post strong numbers for the quarter ended June 30, 2023 (Q1FY24). The company is slated to announce its financial results for the quarter on Monday, July 31.

The auto major, as per Zee Business Research, is expected to post standalone revenue of Rs 31,650 crore, up 19.4 per cent year-on-year (YoY), while earnings before interest, taxes, depreciation, and amortisation (EBITDA) are projected to grow 75.2 per cent to Rs 3,350 crore. The company posted an EBITDA of Rs 1,912 crore in the June 2022 quarter. Profit after tax (PAT), or net profit, is seen at Rs 2,520 crore, up 148.8 per cent against Rs 1,013 crore in the year-ago period.

The research desk adds that Maruti is expected to report volume growth of 6.4 per cent during the June quarter, translating to 4.98 lakh units. Volume is expected to rise on the back of new model launches and discounts on lower-end models. Realisations are estimated to increase by 10.2 per cent to 6.23 lakh per unit.

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Further, margins are expected to improve due to lower manufacturing costs and better operating leverage. Other expenses are estimated to jump 7x to Rs 620 crore.

Key things to watch out for

Booking trends for Jimny and Invicto, new product launches, and the production outlook are some of the key things to watch out for.

Maruti Suzuki India's share price

Shares of the company have rallied 12.8 per cent in the past three months, Trendlyne data show. Earlier this month, the stock of the company surpassed the crucial Rs 10,000 mark. However, it has retreated from its high now.

Maruti Suzuki Invicto Launch

Maruti Suzuki India earlier this month launched its multi-purpose vehicle (MPV), the Invicto. It was the same day when the stock crossed the Rs 10,000 apiece mark. In June this year, Maruti Suzuki India opened bookings for Invicto. The vehicle, the company said, can be booked with a payment of Rs 25,000 from the company's premium retail outlet, Nexa showrooms, or online.

The Invicto marks the company's entry into the premium three-row segment, as it looks to gain a foothold in the above Rs 20 lakh segment with the new model after having attained leadership in the Rs 15-20 lakh vehicle segment last fiscal.

According to MSI Senior Executive Officer (Marketing and Sales) Shashank Srivastava, the three-row SUV/MPV segment stood at around 2.58 lakh units last fiscal, with vehicles priced over Rs 20 lakh accounting for around 1.2-1.25 lakh units. READ MORE

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Maruti Suzuki Q1 earnings