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- 27 Apr 2023
- ICICIdirect Research
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MARUTI SUZUKI POSTS HEALTHY SET OF Q4FY23 NUMBERS
MARUTI - 12579 Change: 97.00 (0.78 %)News: Maruti Suzuki total operating income for the quarter was at Rs 32,048 crore, up 10.3% QoQ. EBITDA in Q4FY23 was at Rs 3,350 crore with corresponding EBITDA margins at 10.5%, up ~70 bps QoQ. Consequent PAT in Q4FY23 came in at Rs 2,624 crore, up 11.6% QoQ. Further, board of directors recommended dividend of Rs 90/share for FY23. It has also announced in-principle board approval for further capacity expansion of 10 lakh units
View: The company reported better-than-expected performance on the margin front primarily led by operating leverage gains. On the demand front, the management expects the industry to grow 5-7% YoY in FY24E primarily led by outperformance in UV space whereas entry level segment is expected to remain flattish with the company’s endeavour to grow ahead of industry. On the input costs front, the management expects a slight uptick in the coming quarter primarily led by increase in steel prices. In a separate development, as per media sources, Maruti’s version of Innova Hycross (MPV) to be launched in coming months. We have a positive view on the stock as it trades at inexpensive valuation of ~20x PE on two year forward basis and is a best bet to play upon the under-penetrated nature of passenger vehicle space domestically
Impact: Positive