Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
07 June, 2023 15:19 IST
Maruti Suzuki: Weak performance in a tough quarter; Good demand recovery
Source: IRIS | 29 Jul, 2021, 05.57PM
Rating: NAN / 5 stars.
Comments  |  Post Comment

Maruti Suzuki India (MSIL) 1QFY22 performance was weak in a tough quarter marked with impact of lockdown on volumes and commodity cost inflation. While commodity inflation will persist in 2Q, there are drivers in place for sustained volume and margin recovery from 2HFY22E, said Motilal Oswal Institutional Equities in its research report.

EBITDA margin declined by 370bp QoQ to 4.7% (v/s our estimate of 5.2%), impacted by cost inflation (net impact of 90bp QoQ), higher staff costs (+18%QoQ/+46%YoY) and operating deleverage impact.There is recovery seen in both urban and rural. Inquiries are similar as 4QFY21 and bookings are at 80-85% of 4QFY21. Inquiries are at 120% of Jun-21 and retails similar to Jun-21. Wholesales and retails in Jul-21 should be higher than Jun-21.

"We lower our FY22E/FY23E EPS by 13%/3% to factor in further cost inflation in 2Q, higher staff cost and lower other income. Maintain Buy," the broking firm added. 

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


 Post Comment
Name Email
Security Code type    into this box
Related Articles
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer