- 01 Feb 2024
- ICICI Securities
REPORTS STEADY PERFORMANCE IN Q3FY24
MARUTI - 12486 Change: 41.00 (0.33 %)News: Sales volume for the quarter stood at 5.01 lakh units, up 8% YoY however down 9% on QoQ basis. Net sales for Q3FY24 came in at ₹ 31,860 crore with corresponding ASPs at ₹6.36 lakh/unit, down 1% QoQ. SUV share of sales in total domestic PV sales volume stood at ~37%. EBITDA margins for the quarter came in at 11.7%, down 120 bps QoQ. Consequent PAT in Q3FY23 came in at ₹3,130 crore, up 33% YoY however down 16% QoQ.
Views: Sequential margin decline was largely attributed to negative operating leverage; higher A&P spends, higher discounts (₹ 23,300 in Q3FY24 compared to ₹ 17,700 in Q2FY24 & ₹18,300 in Q3FY23) and marginal decline in gross margins (down 30 bps QoQ). The company expects domestic PV industry to clock sales volume of ~4.2 million units in FY24E and thereafter grow to ~4.3 million units in FY25E amidst high base. Margins are slated to improve amidst stable RM price basket, cost initiatives and recently incorporated price hike. It expects to commence production of its maiden EV model in CY24 and is looking at both domestic as well as export sales of the same. With tremendous confidence shown in Indian markets and tangible growth longevity by announcing a mega capex plan of ~₹1.25 lakh crore over next 7-8 years (capacity increase from ~20 lakh units to ~40 lakh units amidst ~10 new model launches) we have a positive view on the company with long term investment horizon.
Impact: Neutral