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Maruti Suzuki Q3 Review - Margins Surprises Positively, Demand Outlook Robust: ICICI Direct

Maruti Suzuki Q3 Review - Margins Surprises Positively, Demand Outlook Robust: ICICI Direct

Maruti Suzuki vehicles stand lined up at the Maruti Suzuki India Ltd. showroom in New Delhi, India. (Photographer Prashanth Vishwanathan/Bloomberg)
Maruti Suzuki vehicles stand lined up at the Maruti Suzuki India Ltd. showroom in New Delhi, India. (Photographer Prashanth Vishwanathan/Bloomberg)

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.

ICICI Direct Report

Maruti Suzuki India Ltd. reported a healthier performance in Q3 FY22.

Total operating income for the quarter was at Rs 23,246, up 13% QoQ. Q3 FY22 volumes came in at 4.31 lakh units, up 13.5% QoQ.

Domestic volumes grew 14.2% QoQ to 3.67 lakh units while exports volumes rose 9.4% QoQ to 0.65 lakh units. Average selling price came in at Rs 5.15 lakh/unit, up 1.3% QoQ.

Margins surprised Maruti Suzuki this time, up 250 basis points QoQ to 6.7%. Gross margins expanded 50 bps QoQ while other expenses and employee costs expenses were down 50 bps and 150 bps, respectively.

Maruti Suzuki attributed margin pressures relieved due to better capacity utilisation, lower sales promotion expenses and other cost reduction efforts.

Click on the attachment to read the full report:

ICICI Direct Maruti Suzuki Q3FY22 Result Update.pdf

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