Maruti Suzuki Q2 PAT seen up 2X at Rs 597 cr

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Maruti Suzuki India is to announce its second quarter results. According to CNBC-TV18 estimates, the company's Q2FY10 revenues are seen up 47% at Rs 7091 crore versus Rs 4830 crore.

 

Its OPM at 13.3% versus 7%.

 

The company's PAT up 2X at Rs 597 crore versus Rs 296 crore.

 

Factors to watch out for:

 

In Q2FY10, Expect robust volume bump up of 30% in Q2FY10 result in higher sales due to improved consumer sentiment

Launch of Ritz and exports of A-Star augured well for Maruti

Realization is expected to rise 10.7% YoY (up 0.5% QoQ), reflecting an improved product mix towards A3 and higher export realizations (due to fresh hedges at higher rates

May surprise positively, as the impact of JPY appreciation could beoffset by an appreciating EUR

Low promotion spends and additional steel price benefit should aid sequential margin expansion.

Key thing to look for in the results is be management guidance on steel pricing contract, which the company would enter into in Q3FY10.

Higher depreciation will restrict recurring PAT growth to 111% or Rs6.26b.

Demand recovery in urban markets

 

Volumes Growth YoY

Total sales up 30%

Domestic sales up 22%  

Exports up more than 2X to 37105 units, led by A Star demand in Europe