Maruti Suzuki Q3 PAT seen down 11% at Rs 610 cr
India's largest car maker Maruti Suzuki is set to declare its results for the quarter ended December 2010. According to CNBC-TV18 estimates, its profit after tax is expected to go down by 11% to Rs 610 crore in third quarter of FY11 from Rs 687 crore in same period of last year.
January 29, 2011 / 11:22 IST
India's largest car maker Maruti Suzuki is set to declare its results for the quarter ended December 2010. According to CNBC-TV18 estimates, its profit after tax is expected to go down by 11% to Rs 610 crore in third quarter of FY11 from Rs 687 crore in same period of last year.
Operating profit margin too is seen declining at 10.1% versus 15.1% (YoY). Revenues are seen going up by 27% to Rs 9,513 crore from Rs 7,502 crore.
What to watch for:
-Likely to report a YoY drop in PAT in Q3 due to margin compression
-EBITDA margin is estimated to decline to 10.1% (15.1% in Q3FY10 and 10.5% in Q2FY11) due to higher royalty, adverse forex movement and higher raw material costs.
-Volumes are expected to grow by 27.7% YoY (nearly 5% QoQ) in 3QFY11 to 329,462 units, driven by 36.2% YoY growth in domestic sales.
-Realizations are expected to decline by 0.7% YoY (nearly 0.9% QoQ), impacted by the appreciation of the rupee against the euro and the US dollar.
-Plans to increase its selling price in January 2011 by 1-1.5%. This should help to ease the margin pressure from 4QFY11.
-During CY2010, General Motors, Volkswagen, Nissan and Ford launched Beat, Polo, Micra and Figo, respectively, in the dominant A2 segment, thereby escalating competition for Maruti.
-Thus despite recording 28% volume growth in Q3FY11 and 27% YoY volume growth in 9MFY11, volume momentum will grow at a slower pace due to competitin Volumes
-Total up 28.2% at 3.30 lakh units versus 2.56 lakh units
-Domestic up 36.8% at 2.99 lakh units versus 2.18 lakh units
-Exports down 20.3% at 31130 versus 39116 units Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
