BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Maruti Suzuki India Ltd. reported revenue of Rs 267 billion for Q4 FY22, which came in ahead of our estimate, driven by rise in average selling prices and strong exports.
Gross margin at 26.5% (versus our estimate of 24%) surprised positively, led by price hikes and higher share of exports. Consequently, Ebitda margin came in at 9.1% versus our estimate of 8.6%.
Maruti Suzuki's management indicated that raw material cost headwinds could affect the momentum in Q1 FY23. We expect margins to improve gradually, aided by-
operating leverage benefits,
price hikes,
cost-control initiatives and
improving product mix.
We see demand holding reasonably well, indicated by large pending bookings (~270,000 units). However, supply chain challenges continue to remain a cause of concern.
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