Maruti Suzuki Q2 Review - Below Estimate; Cost Inflation Hurts; Supply Improving: Motilal Oswal
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Motilal Oswal Report
Maruti Suzuki India Ltd. reported a weak performance in Q2 FY22 due to commodity cost inflation and adverse operating leverage. While commodity inflation seems to be subsiding, improvement in the semiconductor shortage situation would improve volume and margin from H2 FY22E.
Revenue grew to ~Rs 205.4 billion (up 10% YoY and 16% QoQ) in Q2 FY22. Ebitda stood at Rs 8.55 billion (down 56% YoY/up 4% QoQ) and profit after tax came in at Rs 4.75 billion (down 65% YoY/up 8% QoQ).
Revenue/Ebitda grew 68%/57%, while profit after tax declined by 18% YoY in H1 FY22.
We lower our FY22E/FY23E earnings per share estimate of Maruti Suzuki by 16%/4% to factor in the impact of the semiconductor shortage on volume and lower other income.
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