Maruti Suzuki Q4 Results Preview: Strong volume growth to aid, margin expansion seen on better mix

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s largest passenger car manufacturer Maruti Suzuki India Ltd. will be reporting its March quarter earnings on Friday amidst some sharp moves seen in the stock recently. The stock has risen over 5% in the last one month and is up 26% so far in 2024.

A CNBC-TV18 poll expects Maruti Suzuki’s revenue growth to be in excess of 20%, while net profit is likely to grow more than 50% compared to the same quarter last year.

Maruti reported strong volume growth of 13% from last year during the January – March quarter. Total volumes for the quarter stood at 5.84 lakh units from 5.14 lakh units last year.

Volume growth in Maruti during the quarter was driven by visible traction in the utility vehicles business, which saw growth of 71% from last year. However, despite the surge in overall volumes, those for entry-level vehicles fell by 28% from year-on-year.

Maruti may report a 290 basis points expansion in its EBITDA margin to 13.4% led by stable raw material costs, improving product mix and benefits from operating leverage.

Shares of Maruti hit a record high of ₹13,066 on April 24 this year. The stock has gained 20% in the last six months and is currently trading at 28 times financial year 2025 price-to-earnings multiple.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow