Maruti Suzuki -  Higher Cost Hurts Q3 Margin; Order Backlog Strong: Motilal Oswal 
Motorcyclists ride past a Maruti Suzuki India Ltd. showroom in Chennai. (Photographer: Dhiraj Singh/Bloomberg)

Maruti Suzuki - Higher Cost Hurts Q3 Margin; Order Backlog Strong: Motilal Oswal 

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.

Motilal Oswal Report

Maruti Suzuki India Ltd.’s Q3 FY21 operating performance was impacted by higher costs, which more than off-set operating leverage benefits.

While the demand environment is strong, cost absorption would be gradual keeping margin in check for FY22.

Revenue/Ebitda/profit after tax grew 13%/6%/24% YoY in Q3 FY21 to approximately Rs 234.5 billion/Rs 22.3 billion/Rs 19.4 bilion. The same in nine-month FY21 fell 19.3%/43%/30%

We lower our FY21E/FY22E earning per share by 6%/2% to factor in higher cost, which is diluted by volume upgrades, lower depreciation, and higher other income.

Click on the attachment to read the full report:

Motilal Oswal Maruti Suzuki Q3FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.