Maruti Suzuki Q1 Review - Improving Volume Outlook But Margin Pressure Continues: Dolat Capital

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. .Dolat Capital Report.Maruti Suzuki India Ltd. exhibited a weak performance in Q1. Negative operating leverage (400 basis points), commodity inflation (350 bps), and one-time expenses relating to Covid-19 dragged down Ebitda margin to 4.6% (down 367 bps QoQ). Maruti Suzuki stated that overall new booking inflow/enquiries remains strong from mid-June onwards for both rural and urban market. Moreover, low network inventory (less than four weeks) and strong order backlog (170,000 vehicle) to support wholesale volume in ensuing months.Recovery in replacement demand with pick up in urban sales and positive growth in rural areas is underpinning strong demand for passenger vehicles. Discount levels have come down and operating leverage will kick in from Q2 as production ramps up but commodity inflation pressures are keeping the margin trajectory vulnerable..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Maruti Suzuki Q1 Review - Improving Volume Outlook But Margin Pressure Continues: Dolat Capital

Maruti Suzuki Q1 Review - Improving Volume Outlook But Margin Pressure Continues: Dolat Capital

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