Maruti Q2 PAT seen down 31.5% at Rs 410 cr

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Maruti Q2 PAT seen down 31.5% at Rs 410 cr

Country's largest car maker Maruti Suzuki is expected to report a profit after tax of Rs 410 crore in the second quarter of FY12, a fall of 31.5% as compared to Rs 598 crore in the corresponding quarter of last fiscal.

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Country's largest car maker Maruti Suzuki is expected to report a profit after tax of Rs 410 crore in the second quarter of FY12, a fall of 31.5% as compared to Rs 598 crore in the corresponding quarter of last fiscal.

Revenues are seen going down by 16% to Rs 7,688 crore from Rs 9,147 crore during the same period. Operating profit margin is likely to be at 7.6% versus 10.5% year-on-year.

On quarter-on-quarter basis, revenues are expected to go down 10% and PAT is seen going down by 25%.

What to watch out for:

* 20% degrowth in volumes due to production loss at Manesar plant on labour issue (25500 units loss), shifting of Dezire production from Manesar to Gurgaon (5500 unit loss) and discontinuation of old swift (12000 unit loss) 
* Maruti's market share dropped by 450 basis points YoY to 43.6% in the domestic passenger car market YTD in FY2012.
Toyota and Volkswagen gained market share, due to launch of Etios, Liva and Vento.

Margins to be impacted by :
* Rupee depreciation as its JPY (Japanese Yen) exposure remains unhedged June onwards (2HCY11)
JPY imports are around 21% of net revenues and EURO exports are around 5% of net revenues.
For every 5% JPY movement, FY13 EBITDA margins would see around 130 bps swing and EPS impact of around 17%
* Increased commodity prices
* Higher expenses for new launches due to rising incentives and discounts
 
Volumes Q2FY12 YoY

*Total volumes down 20% at 2.52 lakh units versus 3.13 lakh
*Domestic volumes down 20% at 2.22 lakh units versus 2.77 lakh
>Exports down 16.2% at 29901 versus 35718 units