Maruti Suzuki - Raw Material Inflation, Weak Mix, Forex Dent Q3 Margins: Prabhudas Lilladher 
Motorcyclists ride past a Maruti Suzuki India Ltd. showroom in Chennai. (Photographer: Dhiraj Singh/Bloomberg)

Maruti Suzuki - Raw Material Inflation, Weak Mix, Forex Dent Q3 Margins: Prabhudas Lilladher 

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Prabhudas Lilladher Report

For Q3 FY21, Maruti Suzuki India Ltd. reported lower than estimated Ebitda at Rs 22.3 billion (our estimate Rs 25.6 billion) led by the combined impact of -

  1. Raw material inflation (up 330 basis point QoQ),
  2. weak product mix and
  3. unfavourable forex.

However higher other income at Rs 9.9 billion (our estimate Rs 6.8 billion) boosted adjusted profit after tax at Rs 19.4 billion (Rs 18.5 billion).

The recent price hike should partially dilute raw material inflation in Q4, however we expect gross margins to remain under pressure.

Click on the attachment to read the full report:

Prabhudas Lilladher Maruti Suzuki Q3FY21 Result Update.pdf

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