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News: Maruti Suzuki India Ltd reported healthy performance in Q1FY25. Sales volume for the quarter stood at 5.22 lakh units, up 4.8% YoY however down 10.6% on QoQ basis. Total operating income for Q1FY25 came in at ₹ 35,531 crore with corresponding ASPs at ₹6.49 lakh/unit, up 3.3% QoQ. SUV share of sales in total domestic PV sales volume stood at ~37% (flattish QoQ). EBITDA margins for the quarter came in at 12.7%, up 42 bps QoQ. Consequent PAT in Q1FY25 came in at ₹3,650 crore, up 47% YoY however down 6% QoQ.
Views:Company shared that CNG penetration for the quarter stood at ~33% i.e. 1 in 3 cars sold domestically was CNG car (penetration was ~27% in Q4FY24). It has augmented capacity at its Manesar plant by ~ 1 lakh units largely catering to Ertiga CNG demand. On the margins side, it realised benefit from benign commodity costs and currency tailwind. Margin are largely to remain at similar levels going forward adjusted for some currency headwinds. Management guidance for overall growth was tepid on a high base with structural drivers intact for long term sustainable growth rate for the industry. With Maruti lagging peers in terms of technology prowess on electrification side we have a neutral view on the stock (see limited upside) despite it trading in tandem with its long period PE multiples of ~25x on forward basis.
Impact: Positive