Maruti Suzuki Q1 Preview Might boost Net Profit by 142% and Sales Volume Growth

Maruti Suzuki

The business will also provide commentary on its most recent sports utility vehicle (SUV) releases. Maruti has a desire to take a piece of the SUV market, as evidenced by recent introductions like the Jimny, Fronx, and Invicto.

The nation’s top automaker, Maruti Suzuki India Limited, is anticipated to release positive first-quarter results today, supported by strong volume growth, price increases, and a more diverse product lineup.

Five brokerage firms on average predict that Maruti’s net profit will increase by around 142 percent over the previous year, to Rs 2,400 crore from Rs 1,012 crore. The analysts predicted a 20% increase in the car major’s operating revenue for the reviewed quarter compared to Rs 25,500 crore previous year.

Due to a 3.3 percent drop in volumes, which was somewhat offset by increased realisations, Maruti’s revenue quarter-on-quarter is projected to stay the same.

According to the analysis, EBITDA, or earnings before interest, tax, depreciation, and amortisation, is expected to rise by roughly 70% to Rs 3,276 crore from Rs 1,912 crore in the same period last year.

It will likely see an increase in EBITDA margins to around 10%, up 241 basis points from the same quarter last fiscal. According to brokerage firm BNP Paribas, lower commodity costs, cost containment, and an improved sales mix largely offset lower operating leverage.

On the strength of new models and discounts on lower-end models, sales volumes are up an estimated 6% year over year, to roughly 5 lakh units. Estimated realisations are up 10.2 percent to about 6.23 lakh per unit.

The market will be on the lookout for MSIL’s management analysis of its new offerings in the sports utility vehicle (SUV) sector.

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