Maruti Suzuki Q4 Review - Margin Pressure Continues, Long Term Thesis Intact: Dolat Capital
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Dolat Capital Report
Maruti Suzuki India Ltd.’s Q4 FY21 numbers were below estimates.
Adverse mix and high commodity prices were key overhang on margins, Ebidta margin stood at 8.35% (versus consensus 9.5%).
Profit after tax was impacted by lower other income owing to mark-to- market losses on invested amount.
Management expects margin pressure to be continue in Q1 due to elevated price of precious commodity, however believes margin pressure to ease out gradually led by price hike and operating leverage.
The company has taken an average price hike of ~0.75% in the month of January 2021 and 1.25% in April-21 to mitigate the impact of raw material cost.
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