Maruti Suzuki Q4 Results Preview: Strong Revenue Growth Likely To Aid Profit

Maruti Suzuki India Ltd. is expected to post strong numbers in the fourth quarter of financial year 2024, led by an upbeat sales growth and margin profile.

The company’s Ebitda is expected to grow 47% due to operating leverage, volume growth and lower commodity costs, according to the consensus estimates by analysts tracked by Bloomberg. The result is expected on Friday.

• Revenue likely to rise 24.8% to Rs 38,459 crore.

• Ebitda likely to rise 47.4% at Rs 4,939 crore.

• Margins likely to expand 190 basis points to 12.82%.

• Net profit likely to rise 46.3 % at Rs 3,839 crore.

Analysts expect a favourable mix of products, led by SUV sales and price hike along with lower discounts to aid these numbers. Exports have also shown a growth of 21% compared to last year.

Here's what the brokerages have to say

• Expects total revenue to increase 20.4% as compared to last year due to higher overall unit sales.

• Better product mix, led by higher SUV and export sales, to aid Ebitda, which will outpace revenue growth in Q4.

• They expect Ebitda margins to improve by 300 basis points year-on-year and 175 bps on a quarter-on-quarter basis.

• The brokerage expects revenue/Ebitda/PAT growth of 22%/53%/56% as compared to last year.

• It currently has an 'add' rating for the stock with target price of Rs 11,248 apiece.   

• Citi expects a 20% revenue growth but has mentioned that volume growth compared to last quarter had a higher share of small cars.

• It does expect this impact to be offset by lower discounts.

• Higher operating leverage mitigates any impact of weaker mix on margin expecting an uptick in this quarter.